Many older adults will need some form of long-term care during retirement, yet there remains a huge challenge over how to pay for it.
In a new Issue Brief, Boston College’s Center for Retirement Research profiled Washington state’s new WA Cares program, which provides residents up to $36,500 (adjusted for inflation) to pay for in-home care or short institutional stays.
The program, which will start paying our benefits in July 2026, is financed by a payroll tax of 0.58 percent.
Why it matters: While this initiative is modest, it provides valuable support for middle-income households and serves as an important proof of concept for other states and the federal government should Congress decide to establish a national social insurance program for long-term care.
Yes, but: A major risk to WA Cares is a November 2024 ballot initiative to make participation voluntary, in which case the program would no longer be feasible.
