The oldest scam in the insurance business: get a LOT of people to pay premiums and then only rarely pay any benefit.
2 years ago, the Washington legislature set up just such a scam for long term care.
And it’s a doozy.
All workers pay the tax: few are likely to collect a benefit: and if they do the benefit is a joke.
The only way you can opt out of it is if you buy private insurance. And you only get one chance to do that, this November.
On a 50-thousand dollar income you pay a tax of about 300 bucks a year.
The maximum LIFETIME benefit is 36-grand…which funds about 3 months in a nursing home or 5 months in assisted living…then you’re back on the street.
And that’s IF you get it. If you work while retired, you pay but you don’t get a benefit. If you don’t pay in for ten FULL years, you don’t get the benefit. If you move out of state, you don’t get the benefit?
Get the idea.
The math makes this whole thing a gigantic joke that will go bankrupt soon.
Even if everyone in the state made 100-thousand dollars a year, they’d only pay IN enough taxes to fund the benefit if they worked for 60 years.
If a private company ran this kind of scam, the CEO would be in jail…which, come to think of it, is the perfect place for Jay Inslee