Deadline looming: Group long-term care coverage opportunity extended to Oct. 10
September 27, 2021
All W-2 employees must have a long-term care insurance option in place by Nov. 1, 2021—or prepare to pay for the state’s long-term care plan as long they’re employed.
BIAW has been sharing information about the state’s new long-term care tax for the last several months. As previously mentioned, employers must start collecting the new tax from their employees in January 2022.
Employees will pay this payroll deduction for the rest of their working lives—unless they receive an exemption by purchasing a qualifying private long-term care plan. Eligible employees may receive up to $36,500 in lifetime long-term care benefits from the state of Washington if they meet all the requirements for coverage.
Employees have alternative coverage by Nov. 1 to avoid new tax
To qualify for the exemption and avoid the tax, an employee must purchase a qualifying private long-term care insurance plan by Nov. 1, 2021 and apply for an exemption between Oct. 1, 2021 and Dec. 31, 2022. There are significant differences between the state plan and private plans detailed here.
For the most part, employees have been on their own when it comes to finding coverage.
Group coverage available
Last month, Allstate Workplace and the Kaiser Insurance Agency with Allstate, a member of the Building Industry Association of Whatcom County, announced they are accepting groups of five or more eligible employees. Learn more about the Allstate Benefit and the WA Cares Act.
Associate member Dennis Kaiser has also recorded a video explanation.
If your employees wish to opt-out and they have not secured an alternative long-term care solution now– time is running out. The last day to enroll employees is Oct. 10.
The voluntary Allstate program offers more choices than the mandatory premium assessment employees will pay in perpetuity unless they receive an exemption.
- It’s a life insurance policy first and a long-term care benefit second.
- It’s portable, meaning employees can take the policy to another employer or state.
- You can terminate the policy and still receive some premium back as a refund.
- Immediate vesting.
- Employees can also include a spouse or domestic partner so they can potentially benefit from the lifetime exception as well.
The Allstate plan offers age-based premiums that remain the same for the life of the contract as the employee participates. A 20-year-old employee could receive a $75,000 benefit for $30.55 each month for life or a $40,000 benefit for $17.30 a month.
The Kaiser Insurance Agency with Allstate is available to help. Simply send in the New Customer Agreement Form as soon as possible and you’ll receive a self-enrollment link within 48 hours. Then interested employees will need to enroll by Oct. 10.
Reach out to Dennis Kaiser at DENNISKAISER@ALLSTATE.COM for more information! If you’re a BIAW member offering any sort of similar benefit, please contact email@example.com so we can share your information as well.
Additional information about the WACares Long-Term Care option
Learn more about the state’s Long-Term Care benefit by attending an upcoming live webinar or view the presentation slides here:
- September 30 | 12pm-1pm
- October 7 | 12pm-1pm
- October 14 | 1pm-2pm
- October 21 | 12pm-1pm
- October 28 | 12pm-1pm