Question 1

How does offering supplemental LTC insurance benefit employers?

Accepted Answer

Offering supplemental LTC insurance helps employers by:
 • Making available to its employees potential underwriting concessions or discounted premiums
 • Boosting recruitment and retention among employees, addressing a rising concern as awareness of the state mandate grows
 • Helping to reduce absenteeism and presenteeism among caregiving employees and their families
 • Differentiating the firm amid rising LTC costs and caregiver burdens with a turn-key, portable, tax-advantaged perk.

Question 2

Are employers required to offer supplemental LTC insurance?

Accepted Answer

No. Employers are not required to offer supplemental LTC insurance in Washington or anywhere else. WA Cares mandates only that employers withhold and remit the state’s 0.58% payroll tax from covered employees; private supplemental LTC remains fully voluntary for employers to sponsor or not.

Question 3

Which workforce demographics are most interested in LTC planning resources?

Accepted Answer

Interest in LTC planning is strongest among mid‑ to late‑career workers (roughly 45–64), who are close enough to retirement to see the risk and often caring for aging parents. Younger Gen X and older millennials also show rising interest as they experience caregiving firsthand and worry about future costs.

Women tend to be especially engaged, given their higher likelihood of serving as family caregivers and living longer.

Higher‑income and college‑educated employees are more likely to act on LTC concerns, but awareness is broadening across income and industry segments.

Question 4

Is supplemental coverage subject to ERISA?

Accepted Answer

It depends. Supplemental LTC insurance may be subject to ERISA (The Employee Retirement Income Security Act) if it is offered as part of an employer-sponsored group benefit plan where the employer contributes, endorses, or administers the coverage. Generally, if the employer’s role is limited to permitting after-tax payroll deduction with no contributions or endorsement, it may fit within ERISA’s “voluntary plan” safe harbor and thus not be subject to ERISA.

Due to the complexity of this subject, we do not advise employers on ERISA or whether a long-term care program would be subject to ERISA. The employer, or its representative, should consult with its independent ERISA advisor regarding its particular situation to determine whether its benefit plans or programs are subject to ERISA.

Question 5

Can supplemental LTC insurance be offered as an executive carve-out?

Accepted Answer

Yes. Employers can offer supplemental long-term care coverage as an executive carve-out, limiting the offer to select key executives rather than all employees. This is permissible because LTC insurance is generally not subject to typical nondiscrimination rules applied to other group health benefits.

Employers can choose almost any class of key people for an LTC carve‑out, such as executives, owners, or other highly valued employees. In practice, carve‑outs typically target “select key executives” and may also extend employer‑paid coverage to their spouses or partners

Question 6

Could an employee carry more than one supplemental LTC insurance policy?

Accepted Answer

No state regulations prohibit an employee from owning and keeping multiple supplemental LTC policies at the same time, as long as each insurer’s underwriting rules are met and premiums are paid. Benefits from multiple policies can generally be collected concurrently, up to each contract’s limits.

An individual might hold multiple supplemental LTC policies in order to:
 • Increase their total daily or monthly benefit
 • Layer a newer policy on top of older coverage to add inflation protection or richer features.
 • Address changing needs over time, eg after a life event or health change.
 • Diversify carriers

Question 7

How is the offer of supplemental insurance affected when employers have employees in multiple states?

Accepted Answer

For multi‑state employers, the offer of Supplemental LTC insurance is tied to which employees are actually subject to WA Cares, not where the company is headquartered. Employers typically:
 • Limit WA‑Cares‑specific supplements to workers whose employment is localized in Washington (i.e., WA Cares payroll tax applies), and may offer a different LTC product option (or none) for other states, and
 • Align eligibility and communication with WA Cares rules, so payroll withholding, state benefits, and supplemental coverage coordinate cleanly and avoid duplicative or confusing coverage for out‑of‑state employees.

Question 8

Can an employer purchase supplemental LTC insurance for its employees or owners?

Accepted Answer

Yes. An employer can pay for supplemental LTC insurance on behalf of its employees or owners, either as a group policy or individual policies owned by the insureds.

The employer typically selects the carrier and benefit design, submits a census for underwriting, and pays premiums (which could be on a discriminatory basis, eg for executives or owners only).

Coverage can be structured as employer‑paid, voluntary with payroll deduction, or some mixture of the two, and tax treatment will depend on entity type, who is insured (employee vs. owner), and who is paying the premium.

Question 9

Can employees enroll in supplemental LTC insurance at any time?

Accepted Answer

When offered through the worksite, employees typically cannot enroll in supplemental LTC insurance at any time.

Instead, group plans usually follow annual or designated open enrollment periods or qualifying events (e.g., new hire) to obtain optimum underwriting such as guaranteed or "simplified" issue. Outside these windows, carriers often revert to full underwriting, assessing health history that could lead to higher rates or even denial.

By comparison, individual and association policies are not subject to enrollment periods, and may be applied for at any time.

Question 10

How can employers help employees learn about supplemental coverage?

Accepted Answer

Employers can share educational resources or host sessions to explain how WA Cares works and how supplemental insurance can help workers plan beyond the state benefit.

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Supplemental Insurance for WA Cares in the Workplace

With "Opt-Out" in the Rear View Mirror, Look Forward to Supplemental Insurance

What Would Supplemental Insurance for WA Cares in the Worksite Look Like?

The Benefits of Offering Supplemental Insurance for WA Cares

Worksite Supplemental LTC FAQ's