Washington’s new long-term-care tax begins in January. Here’s what to know about the program

A mandatory payroll tax to fund Washington state’s new long-term-care program will start coming out of most workers’ paychecks across the state in January.

The insurance benefit, dubbed the WA Cares Fund, is a first-in-nation public insurance program aimed at helping older residents age in their own homes.

The plan, signed into law in 2019 through the Long Term Care Trust Act, will use a 0.58% payroll tax to pay up to a $36,500 benefit for individuals to pay for home health care and an array of services related to long-term health care including equipment, transportation and meal assistance.

The plan is expected to save $3.9 billion in state Medicaid costs by 2052 and eligible beneficiaries will be able to begin collecting benefits starting in 2025.