If approved by voters, Initiative 2124 would make the long-term services and supports trust (LTSST) program optional for all workers. The Office of Financial Management believes that revenues to the LTSST account would decrease as workers choose to opt out of the program, but it does not estimate how many opt outs there would be. Thus, the impact of I-2124 on program revenues and benefits is indeterminate.

Ultimately—possibly as soon as fiscal year 2027—the LTSST program could become insolvent. Insolvency would depend on the number and demographics of individuals choosing to opt out as well as the state’s response. Increasing the premiums or reducing benefits could lead to more departures.

I-2124 would give workers in Washington the opportunity to weigh the level of LTSST benefits provided by the program and the amount of tax they are paying and decide whether it is worth it for them.

Read the report here.