After opting out from the newly established long-term care payroll tax in Washington state by purchasing a qualifying long-term-care insurance, can one terminate the contract with the insurance? Or does one have to keep paying for the insurance every year?

  • It certainly should be designed that you have to keep it, but whether they actually check I don't know. Oct 17, 2021 at 23:28
  • @LorenPechtel Thanks. In Should land, that tax would have never existed. Oct 17, 2021 at 23:38
  • The state is tired of paying for Medicaid for freeloaders who don't get insurance. Oct 18, 2021 at 0:03
  • @LorenPechtel true but with the opt-out close, only freeloaders and low income earners will not opt out. That's why LTC insurances have been inundated with applications. Oct 18, 2021 at 0:12

1 Answer 1


No, according to 3 insurance brokers I talked to. They told me that if an audit from the WA tax services sees that one has terminated the insurance, one would get some penalties (likely paying the 0.58% on the W2 income of the years without the long-term care insurance + some penalties). Obviously one can claim that the insurance brokers are biased, so if someone else can confirm and deny, preferably via a legal text, that'd be great.

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