From a money guy I know:

Incoming WA State LTC Tax

WA State is pushing through the legislature a state provided Long Term Care Insurance Policy to augment the average person being unprepared to afford expected Long Term Care costs. As of this email, this is all tentative until approved.



How does this apply to you? Additional Taxes

If you get paid a W-2 wage in Washington State, to pay for this, your income taxes are going up by 0.58%. For example, if you make $500k/yr that’s $2900/yr in taxes.



Opting Out

You will have the option to opt out of this additional tax, but only if you possess a privately-owned Long-Term Care Insurance policy by July 24th, 2021. If you are a client that currently does not have a privately owned Long-Term Care policy, you will need to be approved and accept a policy by this date. From a backwards planning perspective, I would plan to have an application into the insurance companies by the end of this month.



Public Option Policy Description

The WA State Long Term Care policy will provide each eligible person $36,500 in available benefits (aka benefit pool) for those experiencing a Long-Term Care Event. This is the result of $100/day of benefit reimbursements provided for 365 days. The benefit pool does not refill, and the pool is expected to increase with the costs of health care.



Should you buy private Long Term Care Insurance?

From our analysis on prevailing Long Term Care costs out there, “opting out” by purchasing private Long-Term Care will be financially advantageous if you fit the following criteria:

- Live in or will live in WA State

- Are in Good Health

- Are more than 9 years out from retirement

- Are currently being paid via W-2 (or will be in the future)

- Are a female that currently makes over $128k/yr (or will in the future)

- Are a male that currently makes over $78k/yr (or will in the future)

So...

Now WA is a good state to retire to?

Seriously, I'll move back when it's time for me to go into a facility if the state is paying for it*

*If I make it that long. I'll be senile and most places don't put up with jacking off in front of nurses (trust me)

The long term care insurance quotes I got were kind of crazy.

Pacific Life $8,739 per year
Lincoln Financial Group $12,240 per year
John Hancock $9,598 per year

All had $250K death benefit. But, holy crap, I need to shop around, or just pay the penalty.

Interesting. The radio says we can get better coverage for cheaper than what the state will charge us.

Having my diaper changed once a week?
Thanks, but No!

This is complete bullshit, even for reasons other than the obvious...

This is just a money-grab to stash a ton of money in the coffers, Re-invest, & make money...

I’ve both had family in LTC, and have friends that currently work in it....neither $36,500, nor $100/day will cover shit.

Most places won’t even consider your application for such a small amount.

So what, now build ‘state-run’ facilities (for more tax money, and worse care?

Typical ‘sounds good without actually considering the unintended consequences’...

Oh, but if it doesn’t work, we’ll just raise taxes...

Stay away from Lincoln. I had disability insurance with them through my employer. They will do everthing they can to avoid paying anything.

I can bearly read and write, with short term memory problems after my stroke, but they insisted I could return to work.....as a Registered nurse.

Thank you. I haven't made any decisions, but this helps cross one off the list. I'm sorry they fought you on your claim.

So, using the formula in the OP, it’ll cost me North of $750

Assuming MMallecks numbers are even close to what my quotes will be, this looks intentionally low-balled. Meaning if given the choice of paying thousands for an additional policy, or just sucking up and paying the “penalty/tax”, many many people will just have to play ball being unable to afford to “Opt Out”

Fucking dicks with their hands in my pockets, again.

I was listening to an interview about this very thing today on the radio and the stats show that 2/3 of people that go into long term care die in the first year.

Do you have a reference or link for that?

That’s definitely true for Hospice Care (by definition), but not LTC, in my experience.

Just to get some outside sources involved...

Washington State Long Term Care Trust Act
https://www.ltc-associates.com/education-center/who-pays-for-long-term-care/public-programs/washington-state-long-term-care-trust-act/#gs.xxkcrn

That sounds surprisingly high to me as well

The state bastardizes definitions though, so 'long term care' could include a variety of things

May I ask who this ‘money guy’ is?

It seems a bit strange to have a date we must have the policy by, before the legislation has even been passed.

They've been wanting a state income for awhile now. This is their back door way to get it.