Gov. Inslee has signed SHB 1732 and ESHB 1733. As adopted, SHB 1732 delays implementation of the state’s long-term care program by 18 months. If employers have withheld any premiums this month, they have 120 days (from the date of collection) to refund them to employees.

Long-term care premiums will now be assessed beginning July 1, 2023, and benefits will be payable beginning July 1, 2026. Additionally, SHB 1732 allows people born before 1968 to be eligible for prorated benefits if they pay the premium for at least one year.

Meanwhile, ESHB 1733 allows some groups of people to apply for exemptions from the program: veterans with service-connected disabilities, spouses of active-duty service members, employees with nonimmigrant visas for temporary workers, and employees who work in Washington but live elsewhere.

As I’ve written, these changes are not expected to improve the solvency of the program. SHB 1732 would slightly reduce the premium rate required to maintain solvency, but ESHB 1733 would increase the required rate. As things stand now, the premium rate will still have to be higher than the statutory 0.58% if the program is going to be solvent over 75 years.

Further, the changes made do not address the issue of people who vest in the program but then leave the state (making them ineligible for benefits).

Our policy brief on the long-term care program is here. We’ve also written about other proposed changes to the long-term care program here and here.