Several states are considering public options similar to the program Washington launched in July
Key Takeaways
- Washington state has launched WA Cares, the first state-run long-term care insurance program.
- Policy experts say the program could show whether public insurance can make long-term care affordable for older Americans.
Washington in July became the first state to begin paying long-term care benefits through a public insurance program. Many states and future retirees worried about these costs are watching.
A growing number of adults are struggling with long-term care expenses. Policy experts are eager to see if Washington’s new experimental program could serve as a model for retirees across an aging country. WA Cares is the nation’s first state-run long-term care insurer, with benefits financed through a 0.58% tax on workers’ pay.
Seventy percent of Americans who reach age 65 will need long-term care—medical and personal services that span everything from living in a nursing home to getting help with chores. But few are financially prepared for it, according to KFF, a health-focused think tank.1 Many say the cost puts care out of reach: In-home care alone can run some $80,000 a year.2
“A lot of people are watching how WA Cares unfolds,” said Hyunjee Kim, assistant professor at Oregon Health & Science University, who received a grant to study WA Cares. Kim said she’s watching to see what works well for beneficiaries and caregivers, as well as challenges that arise.
Why This News Matters
Medicare generally doesn’t cover long-term care, no matter a retiree’s financial needs. Families often burn through their savings before qualifying for Medicaid, the means-tested program that does.
What happens in Washington will have wider implications. A dozen additional states are looking at ways to make long-term care more affordable, including public long-term care insurance programs, according to Trustmark, which offers employers benefit packages for their workers.3
A bipartisan federal bill, the WISH Act, would create a national catastrophic long-term care insurance program, though it has yet to advance in Congress.4 Under the proposal from Reps. Tom Suozzi (D-N.Y.) and John Moolenaar (R-Mich.), older adults would receive a monthly benefit after covering their own care for one to five years, depending on income.
How WA Cares Works
WA Cares pays for expenses that Medicare doesn’t cover, such as home health aides, meals, and transportation.5 Washington began collecting the 0.58% tax from workers’ paychecks in July 2023.
Workers typically qualify for WA Cares if they pay the tax for a decade, but the state is using looser eligibility early in the program. Benefits are capped at a lifetime total of $36,500 per person, adjusted annually for inflation.6
Since starting up July 1, WA Cares has received more than 500 applications and deemed 130 people eligible for benefits, according to Jessica Nelson, a spokesperson for the Washington State Department of Social and Health Services.
“We are continuing to get the word out about the program since the group of people who both meet the contribution requirement and need long-term care is relatively small right now,” Nelson said in an email.
https://www.investopedia.com
By Sarina Trangle Published August 19, 2026 11:26 AM EDT
