Getting Old Ain’t Easy…Or Cheap!

If you think having teenagers is expensive, just try having a senior in long term care! Fortunately, Washington State is ahead of the curve with the WA Cares Fund. This new fund aims to provide relief to residents with long term care needs. How big an issue is this, and how does it affect our Paychecks?

Here are Five Fast Facts about our first-in-the-nation long term care program:

  1. 🦽What we talkin’ bout, Willis? The WA Cares Fund was created in 2019 and revised earlier this year. It provides up to $36,500 (lifetime) in long-term care benefits for things like wheelchairs, ramps, and hospital beds at home. You know, all that sexy stuff you just gotta’ have when you’re old.
  2. 💰How do we pay for it? It will be funded through a payroll tax starting in July 2023, with benefits starting in July 2026. For someone earning $52,000, that amounts to $302 per year. Or roughly 14 boxes of Depends.
  3. ⏱️Why wait? The need for revision and delay will address potential funding shortages left by people who won’t get any benefit from the program opting out (over 700,000 people so far). WHY DO YOU HATE OLD FOLKS??
  4. 👴👵Is it really necessary? About 70% of 65-year olds will need some kind of long term care. The number of people across the country needing long term care is expected to double from 8 million to 16 million by 2030. Side note: invest in blenders!
  5. 💸What does the future look like? The biggest piece of long term care is nursing homes. The cost depends on where you live but the median in 2020 was $7,756 per month for a semi-private room. That number is expected to double in the next 20 years. Hey, why are you looking at Granny’s life insurance policy…?

🔥Bottom line: Medicare coverage for long term care is limited, Medicaid coverage requires you to be poor before kicking in, and long term care insurance can be very expensive. This program seeks to provide at least some relief to Washingtonians who don’t have other options. It’s a big problem that most of us will face somehow! What do you think of this program?

Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!

Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!