Washington State became the first state in the nation to create a mandatory, publicly funded long-term care program known as the WA Cares Fund. The program was designed to help eligible workers pay for future long-term care expenses through a payroll-funded insurance benefit.
While the program provides an important safety net, many Washington residents are surprised to learn that the benefit has limitations and may not be sufficient to cover the actual cost of long-term care.
Understanding how the WA Cares Fund works—and how it compares to private long-term care insurance—can help you make informed decisions about protecting yourself and your family.
What Is the WA Cares Fund?
The WA Cares Fund is a state-administered long-term care insurance program funded through mandatory payroll deductions from most Washington employees.
Eligible participants who meet the program’s vesting requirements may qualify for a lifetime benefit to help pay for approved long-term care services if they need assistance with activities of daily living due to aging, illness, or disability.
Covered services may include:
- In-home personal care
- Adult day services
- Assisted living
- Nursing home care
- Home modifications
- Caregiver support
- Medical equipment and other qualifying long-term care services
Is the Benefit Enough?
The WA Cares Fund provides a lifetime benefit that is adjusted periodically for inflation. While this benefit can help offset some long-term care costs, it may cover only a portion of the expenses many families ultimately face.
For perspective:
- The average cost of assisted living or nursing home care can exceed the program’s lifetime benefit in a relatively short period.
- Home health care and specialized memory care can also become expensive over time.
- Long-term care needs can last several years depending on an individual’s health condition.
This is one of the primary reasons many financial professionals recommend viewing the WA Cares Fund as a foundation, not necessarily a complete long-term care solution.
How Does Private Long-Term Care Insurance Compare?
Private long-term care insurance often offers greater flexibility than the state program.
Depending on the policy you choose, benefits may include:
- Higher benefit amounts
- Longer benefit periods
- Inflation protection
- More flexible coverage options
- Cash-value features (for certain permanent life insurance policies with long-term care riders)
- Benefits that may continue even if you move outside Washington (depending on the policy)
Unlike the WA Cares Fund, private coverage can often be customized to better fit your family’s financial goals and anticipated care needs.
Who Should Consider Additional Coverage?
Additional long-term care planning may be worth considering if you:
- Own a home or other significant assets
- Want to help protect your retirement savings
- Prefer greater flexibility in choosing care providers
- Expect to retire outside Washington
- Have a family history of chronic illness or dementia
- Want to reduce the financial burden on your spouse or children
Everyone’s situation is different, which is why personalized planning is important.
Planning Early Can Make a Difference
One of the biggest mistakes people make is waiting until they develop health issues before considering long-term care coverage.
Like many types of insurance, qualifying for private long-term care coverage often becomes more difficult—and more expensive—as you age or develop medical conditions.
Planning earlier typically provides:
- More coverage options
- Better underwriting opportunities
- Lower premiums
- Greater financial flexibility
Which Option Is Right for You?
There is no one-size-fits-all answer.
Some individuals may decide that the WA Cares Fund provides sufficient protection for their needs, while others may choose to supplement it with private long-term care insurance or permanent life insurance that includes long-term care benefits.
The right solution depends on factors such as:
- Your age
- Your health
- Your retirement goals
- Your family situation
- Your current assets
- Your long-term financial objectives
Final Thoughts
The WA Cares Fund represents an important step toward addressing the growing need for long-term care planning. However, understanding both its strengths and its limitations is essential when building a comprehensive financial strategy.
Long-term care planning is about more than protecting your finances—it’s about preserving your independence, reducing the burden on your loved ones, and preparing for the unexpected.
If you have questions about how the WA Cares Fund fits into your overall financial plan or would like to explore additional long-term care options, I’d be happy to help you understand your choices. Together, we can evaluate solutions that align with your goals, budget, and future plans. Visit Finance By Keen Rosal.