A New Fix for Long-Term Care

Americans' increasing longevity has implications for those caring for the growing senior population once they can no longer look after themselves, reports Politico . State initiatives offer innovations that could inform a national approach, with Washington state a notable example. Washington Gov. Jay Inslee recently signed a bill to help underwrite long-term care needs of all state residents, which could serve as a model for other states, and possibly the federal government. Washington's policy differs from the failed voluntary funding framework, in which benefits are paid only to those who opt into a payroll tax to finance them. The state's Long-Term Care Trust Act supports social insurance, collecting funds from a wide populace to cover the future needs of those who need assistance. Workers will pay a mandatory payroll tax of only 58 cents per month for every $100 in income starting in 2022, or $18 annually for the average wage earner. These contributions will go into a trust fund, and when fully implemented, employees would be able to access their benefits once they have paid into the program for a decade and meet the medical system's requirements for long-term care. The decision of how to spend this money will be left up to recipients, for the most part.