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» The Impending Future of Long-Term Care

July 25, 2023

Employee Benefits, Health Insurance, Healthcare, Legislation

The Current Status

In September 2021, Washington State had indeed taken the lead in establishing a state-run Long-Term Care (LTC) program funded by a payroll tax. The program is known as the Washington Cares Fund.


The Washington Cares Fund was signed into law in May 2021 and is intended to provide a benefit to eligible individuals to help cover the costs of long-term care services they may need in the future. The program is funded through a payroll tax on employees’ wages, with a certain percentage of their income deducted to contribute to the fund. The program aims to provide a lifetime benefit to eligible individuals, which can be used to pay for a variety of long-term care services, including home care, assisted living, and nursing home care. The program is the first of its kind in the United States, and it was established to address the growing need for long-term care services as the population ages.


What does it mean to have a government funded LTC program?

Having a government-funded Long-Term Care (LTC) program means that the government takes an active role in providing financial support and assistance for individuals who require long-term care services. Long-term care refers to a range of services and support that people may need over an extended period due to age, disability, or chronic health conditions. These services can include assistance with activities of daily living (such as bathing, dressing, eating), medical care, and other forms of support.


In a government-funded LTC program, the government allocates resources and funds to help cover the costs of long-term care services for eligible individuals. The funding for such programs usually comes from various sources, including taxes, social insurance contributions, and other public revenue streams.


The objectives of a government-funded LTC program can vary but typically include:

  1. Affordability: Making long-term care services more affordable and accessible to individuals who may have difficulty paying for them out-of-pocket.
  2. Equity: Ensuring that individuals with different levels of income and resources have access to similar long-term care services based on their needs, regardless of their financial situation.
  3. Quality of care: Setting standards and regulations to maintain the quality and safety of long-term care services provided under the program.
  4. Support for caregivers: Offering support and assistance to family caregivers who may be taking care of their loved ones at home.
  5. Sustainability: Creating a sustainable system that can meet the increasing demand for long-term care services as the population ages.


The specific details of a government-funded LTC program, such as eligibility criteria, covered services, and funding mechanisms, can vary depending on the country or region. Some countries have comprehensive universal LTC programs, while others may have targeted programs for specific populations or needs. It’s essential to keep in mind that the availability and extent of government-funded LTC programs can change over time due to shifts in government policies, budgetary considerations, and the changing healthcare landscape.


Who is next?

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Eleanor Schroeder

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Posted by in Employee Benefits, Health Insurance, Healthcare, Legislation