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SB 5291

Implementing the recommendations of the long-term services and supports trust commission.

2025-2026 Regular Session Introduced by Annette Cleveland and 7 co-sponsors

Strengthen WACares by automatic benefit indexing, broaden eligibility and out-of-state participation, and enable a private market supplemental long‑term care option.

Effective date 1/1/2026*.
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WeVote Research Nonpartisan
Bill Summary · SB 5291

Summary — SB 5291 (2025): Implementing recommendations of the Long‑Term Services and Supports Trust Commission (WACares)

Status: Chapter 380, 2025 Laws. Governor signed 5/20/2025. Effective date: January 1, 2026.

Purpose
- Strengthen and operationalize Washington’s Long‑Term Services and Supports Trust Program (WACares) by adopting multiple Commission recommendations to improve administration, premium enforcement, benefit indexing, eligibility rules, out‑of‑state participation, and private market coordination.

Key provisions / substantive changes
- Out‑of‑state participants
- Allows employees/self‑employed persons who move out of Washington to elect to continue coverage if they: paid premiums for at least 3 years with ≥500 hours worked in each year, and notify ESD within 1 year of establishing a non‑WA primary residence.
- Once elected, out‑of‑state participants may not withdraw from the program.
- ESD must adopt rules for reporting/verification of wages and earnings; failure to submit required reports or premiums leads to cancellation effective within 30 days of written notice.
- After age 67, documentation requirement is suspended unless the participant continues to earn income (then reporting and premium remittance required).
- Entities providing services outside WA remain subject to non‑discrimination rules.

  • Premium collection & enforcement

    • Establishes/enhances an enforcement structure for the Employment Security Department (ESD) to collect premiums from participants (including out‑of‑state), verify reported wages/self‑employment earnings, and adopt reporting standards to minimize burden.

  • Benefit unit indexing & governance

    • Eliminates the Long‑Term Services and Supports Council (statutory repeal) and transfers benefit indexing to an automatic annual inflation adjustment using the Consumer Price Index (CPI‑W for Seattle area, 12‑month period before Sept. 1), effective each Jan. 1.
    • Defines “benefit unit” as up to $100 per day paid to providers; indexing mechanism now statutory rather than council‑determined.

  • Eligibility rule change

    • Removes the requirement that a 10‑year premium path include no interruption of five or more consecutive years — i.e., a person can qualify by paying premiums for a total of 10 years even with longer interruptions.

  • Exemptions

    • Allows employees who previously obtained an exemption to rescind that exemption and join the Trust Program if done prior to July 1, 2028.
    • Adds a voluntary exemption for active‑duty service members engaged in off‑duty civilian employment.
    • Automatically exempts employees holding nonimmigrant temporary work visas (with transition rules when status changes).

  • Pilot & private market options

    • Authorizes a pilot project to assess the Program’s capacity to manage eligibility determinations and make payments to providers.
    • Establishes a statutory framework for a private market supplemental long‑term care insurance option meant to provide coverage after Trust benefits are exhausted (new provisions added to Title 48).

Numbers and operational context
- Premium rate (existing): 0.58% of employee wages (premium assessment began July 1, 2023).
- Benefit unit: up to $100/day; lifetime max of 365 units (current equivalent $36,500).
- Work/eligibility thresholds: age 18+, Washington residency (or elected out‑of‑state coverage), assessed need for assistance with activities of daily living, and either 3 of last 6 years or 10 total years with at least 500 hours in each qualifying year.
- Benefit eligibility and program timing under existing law: benefits begin July 1, 2026; out‑of‑state participants may become eligible on or after July 1, 2030 (retained as program context).

Who is affected
- Washington employees, employers, and self‑employed persons who have paid or will pay WACares premiums (including those who move out of state).
- ESD, DSHS, HCA — agencies involved in administration, collection, verification, and payments.
- Service providers (in‑state and out‑of‑state) and insurers offering private supplemental long‑term care policies.
- Previously exempted employees (who may rescind exemption by 7/1/2028).

Procedural / timing notes
- Bill passed both chambers and was signed into law (effective 1/1/2026). Several provisions modify existing RCW chapters, repeal the statutory Council, and add new statutes to insurance law to permit supplemental policies and program pilots.

Compiled from official sources — confirm details with the bill’s official record.

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