It’s a stealth income tax. Most high income people saw through it and opted out by buying their own LTC (which isn’t indexed to income) and then canceling it once their exemption was recorded.
I only know a couple people who have since canceled their private policies due to a fear the laws will be amended requiring periodic attestation. I’m still holding my policy, though I am eager to cancel it.
It's an income tax in all but name because your income is taxed a certain percentage in order to fund the benefit.
There was a brief window where you could get LTC insurance from any provider and use it to opt out of the tax. High income earners did that because it was cheaper than paying the tax and also because receiving the benefit required you to stay in WA. The opt-out window has since closed, and if you haven't opted out by now, you will forever pay that tax if you work in WA.
