The Washington Cares Fund, a state-led long-term care insurance program established in 2019, is designed to offer crucial support for long-term care services. For University of Washington (UW) employees, understanding how this program translates into personal benefits is key. While it involves mandatory payroll deductions starting July 1, 2023, the UW WA Cares program is structured to provide significant advantages in the long run, ensuring access to essential long-term care services when needed.
This overview will detail the benefits of the WA Cares Fund for UW employees, explaining how it works, who is eligible, and what services are covered. By understanding these aspects, UW employees can appreciate the value and security this program offers.
Delving into the Benefits: What the WA Cares Fund Offers UW Employees
The primary benefit of the WA Cares Fund lies in providing access to long-term care services. These services, commencing July 1, 2026, are designed to support individuals who require assistance with daily living activities due to illness, injury, or age-related conditions. For UW employees, this translates into a safety net, ensuring that quality long-term care is within reach should the need arise.
Key benefits of the WA Cares Fund include:
-
Access to a Range of Long-Term Care Services: The fund can be used to purchase a variety of services, including professional in-home care, care in assisted living facilities, equipment to aid with mobility and daily tasks, home safety evaluations to prevent falls and accidents, and even compensation for family members who provide necessary care. This comprehensive coverage ensures that diverse long-term care needs can be met.
-
Financial Security for Long-Term Care Needs: Long-term care can be exceptionally expensive, potentially depleting savings and assets. The WA Cares Fund offers a pre-funded benefit, reducing the financial burden of long-term care costs. For UW employees, this provides peace of mind, knowing that a portion of future long-term care expenses will be covered, protecting their financial stability and retirement savings.
-
Support Alongside Other Benefits: The WA Cares Fund is designed to work in conjunction with other existing benefits. It is not a leave program but can be utilized concurrently with Paid Family & Medical Leave (PFML) and long-term disability insurance. This integrated approach ensures comprehensive support during times when employees may require both leave and long-term care services.
Understanding the Mechanics: Premiums, Benefit Amount, and Eligibility
To fully grasp the benefits, it’s important to understand how the WA Cares Fund operates. The program is funded through a payroll premium paid by employees.
Payroll Deductions and Premiums:
- The premium rate is set at 0.58% of gross wages. For every $100 earned, $0.58 is contributed to the fund.
- For a UW employee earning $50,000 annually, the annual premium would be $290, or approximately $12.08 per paycheck (assuming 24 paychecks per year).
- These payroll deductions commenced on July 1, 2023, and are visible on paychecks issued from July 10, 2023, onwards.
- Premiums are collected on wages for employees whose work is based in Washington State, including paid time off and vacation cash outs (excluding specific PFML supplemental benefit payments).
Benefit Amount and Eligibility:
- Benefits are accrued through “benefit units,” with each unit valued at $100 in 2026, and expected to increase over time.
- Employees earn benefit units through payroll premium deductions, capped at 365 units.
- The initial maximum benefit value is projected to be $36,500 in 2026.
- To be eligible for benefits, UW employees must have contributed to the fund for a total of 10 years (without a break of 5 or more years) or for 3 of the last 6 years at the time of application, and have worked at least 500 hours per year during qualifying periods.
- Eligibility also requires being at least 18 years old and a current Washington State resident.
- Special provisions exist for individuals born before January 1, 1968, who may qualify for pro-rated benefits even with fewer years of contribution.
Exemptions: When Employees Might Opt-Out
While the WA Cares Fund is mandatory, there are specific circumstances under which UW employees may be eligible for exemptions. Understanding these exemptions is crucial for making informed decisions.
Types of Exemptions:
-
Permanent Exemption: Available to veterans with a 70% or higher service-connected disability. Applying for and receiving a permanent exemption means employees will not contribute to the fund and will not be eligible for benefits in the future. This decision is irreversible.
-
Conditional Exemptions: These exemptions are based on specific individual statuses and are conditional. Categories for conditional exemptions include:
- Employees working for a WA employer but whose primary residence is outside of Washington.
- Individuals temporarily working in WA on a nonimmigrant visa.
- Spouses or registered domestic partners of active-duty military members.
- It’s crucial to note that conditional exemptions are valid only as long as the qualifying conditions are met. Any change in circumstances (e.g., moving residence to WA, change in visa status, military status change) requires notifying the Employment Security Department (ESD) and UW within 90 days. Failure to do so can result in liability for owed premiums.
Applying for and Notifying UW of Exemptions:
- Applications for exemptions are submitted to and approved by the ESD.
- To apply, UW employees need to create a Secure Access Washington (SAW) account, add “Paid Family and Medical Leave,” create a WA Cares Exemption account, and submit the application through the ESD portal.
- Upon approval, ESD issues an exemption letter.
- It is the employee’s responsibility to notify UW of the approved exemption by submitting a copy of the ESD exemption letter through the UW Payroll secure webform. ESD does not automatically notify UW.
- Notification is crucial to prevent payroll deductions. Exemptions typically take effect the calendar quarter after approval, provided UW is notified. Failure to notify UW may result in non-refundable premiums being deducted.
Maximizing Your Benefit: Resources and Further Information
To fully leverage the benefits of the UW WA Cares Program and make informed decisions regarding exemptions and eligibility, UW employees have access to several resources.
Key Resources:
- UWHR WA Cares Fund FAQs: UW Human Resources (UWHR) provides a dedicated FAQ page addressing common questions and concerns about the WA Cares Fund for UW employees. This is an excellent starting point for detailed information and UW-specific guidance.
- ESD’s WA Cares Fund Website: The Employment Security Department’s official WA Cares Fund website offers comprehensive information about the program, including eligibility details, exemption application processes, and benefit information.
- Department of Social and Health Services’ (DSHS) LTSS Website: The DSHS Long-Term Services and Supports (LTSS) website provides broader context and information about long-term care services in Washington State, including the WA Cares Fund.
- DSHS One-Page Overview: DSHS also offers a concise one-page overview document summarizing the key aspects of the LTSS Trust Act and the WA Cares Fund.
By utilizing these resources and understanding the details of the UW WA Cares Program, University of Washington employees can effectively plan for their future long-term care needs and appreciate the valuable benefits this program provides. While payroll deductions are a mandatory aspect, the long-term security and access to care offered by the WA Cares Fund represent a significant advantage for UW employees and their families.
