What Is the WA Cares Fund?
The WA Cares Fund is Washington State's groundbreaking public long-term care insurance program — the first of its kind in the nation. Established by the Long-Term Services and Supports (LTSS) Trust Act, this program creates a dedicated funding stream for long-term care services that will ultimately benefit adult family home residents, caregivers, and providers across the state.
The program works by collecting a small payroll premium from most Washington workers, creating a trust fund that provides benefits when those workers eventually need long-term care. For the adult family home industry, the WA Cares Fund represents a significant new funding source that will increase the number of individuals who can afford residential care while reducing reliance on Medicaid. The WA Cares Fund website provides comprehensive information about the program's rules and implementation timeline.
How the WA Cares Fund Works
Premium Collection
Most Washington workers contribute a small percentage of their wages — currently 0.58% — to the WA Cares Fund through payroll deductions. Self-employed individuals can opt into the program voluntarily. Certain workers who purchased qualifying private long-term care insurance before the program's implementation could apply for an exemption. The Employment Security Department oversees premium collection and maintains worker contribution records.
Benefit Eligibility
To qualify for benefits, individuals must have contributed to the fund for a qualifying period (generally at least ten years without a break of five or more years, or three of the last six years for those near retirement age at program inception). They must also meet functional criteria demonstrating a need for long-term care assistance — typically needing help with at least three activities of daily living (ADLs). The benefit assessment process is administered through DSHS Aging and Long-Term Support Administration.
Benefit Amount and Usage
The WA Cares Fund provides a lifetime benefit amount — initially set at $36,500 and adjusted annually for inflation. This benefit can be used for a wide range of long-term care services including adult family home care, in-home care services, assisted living costs, adaptive equipment and home modifications, caregiver training and support, care coordination services, and other qualified long-term care expenses. While the benefit amount may not cover the full cost of extended residential care, it provides a significant supplement that can bridge gaps between personal resources and Medicaid eligibility.
Impact on Adult Family Homes
New Funding Source for Residents
As the WA Cares Fund matures and benefits begin flowing, adult family home providers will see a new category of financially supported residents. Individuals who previously could not afford residential care without Medicaid — but earned too much to qualify — will have WA Cares benefits to help cover costs. This middle-income population represents a significant growth opportunity for AFH providers.
Reduced Medicaid Dependency
By providing a universal benefit floor, the WA Cares Fund may reduce the number of individuals who must spend down their assets to qualify for Medicaid before accessing long-term care. This benefits providers by creating a more diverse payer mix and potentially reducing the administrative complexity of Medicaid billing for some residents.
Provider Preparation
Providers should prepare for the WA Cares Fund by understanding the benefit structure and how claims will be processed, updating marketing materials to inform potential residents about WA Cares as a funding option, training administrative staff on benefit verification and billing procedures, and building relationships with DSHS ALTSA to stay current on implementation details. DSHS Residential Care Services will provide guidance to providers as the benefit becomes available.
Impact on Caregivers
As Contributors
Caregivers working as employees in Washington contribute to the WA Cares Fund through their payroll deductions, building their own future long-term care benefit while working in an industry that provides exactly the type of care the fund supports. This creates a meaningful connection between your current work and your future security — the care you provide today may be similar to the care you receive someday through your own WA Cares benefit.
Job Growth and Security
As the WA Cares Fund increases the number of individuals who can access long-term care services, demand for qualified caregivers will grow correspondingly. This further strengthens an already robust job market for trained caregivers in Washington State. The Bureau of Labor Statistics already projects significant growth in caregiving positions, and the WA Cares Fund may accelerate this trend.
Career Investment
Understanding the WA Cares Fund positions you as a knowledgeable professional who can help families navigate their care funding options. Families researching adult family home placement will have questions about how to use WA Cares benefits, and caregivers and providers who can explain the program add value to the placement process.
How WA Cares Compares to Medicaid
The WA Cares Fund and Medicaid long-term care are complementary but distinct programs. Medicaid is means-tested, requiring applicants to meet strict income and asset limits. The WA Cares Fund is earned through payroll contributions, with no means test for benefit access. Medicaid covers the full cost of care for eligible individuals. WA Cares provides a defined lifetime benefit amount that supplements other resources. Medicaid has extensive rules about asset transfers and spend-down. WA Cares has no asset restrictions.
For many individuals, WA Cares benefits may be used first, with Medicaid providing ongoing support after WA Cares benefits are exhausted. The Health Care Authority and DSHS ALTSA coordinate policies to ensure smooth transitions between funding sources.
Planning with WA Cares
Financial planners, elder law attorneys, and families should incorporate WA Cares benefits into long-term care planning. Knowing that a WA Cares benefit is available may affect decisions about private long-term care insurance purchases, retirement savings strategies, timing of care facility selection, and Medicaid planning approaches. The Washington Office of the Insurance Commissioner provides guidance on how WA Cares interacts with private long-term care insurance.
Staying Informed
The WA Cares Fund is a evolving program with ongoing legislative refinements and implementation updates. Stay informed through the official WA Cares Fund website, DSHS ALTSA communications, industry associations for adult family home providers, and continuing education courses through HCA Training that cover long-term care funding and policy.
Whether you are a caregiver building your own future benefit while serving others, a provider preparing for new funding streams, or a family member exploring care options for a loved one, the WA Cares Fund represents Washington State's commitment to ensuring that long-term care is accessible to all who need it. Combined with Medicaid, VA benefits, private insurance, and personal resources, WA Cares adds another important piece to the long-term care funding puzzle.
For caregivers ready to build their careers in this growing field, HCA Training provides the certifications that qualify you for Washington's expanding care workforce, and AFH Shifts connects you with providers across the state who need your skills today — and will need them even more as the WA Cares Fund brings more individuals into the long-term care system.