Here is the latest on WA Cares Fund.
The LTSS Trust Commission will be holding its next Investment Strategy Subcommittee Meeting this Friday, November 4th at 9am Pacific Time. You can find the webinar link here or in the Agenda attachment.
This hearing is an opportunity for the Washington State Investment Board (WSIB) to discuss the rate of return it expects to receive on its Trust Fund investments.
In addition, the State Actuary will make a presentation on the just-released 2022 Actuarial Study and what it means for the program’s projected solvency.
As you know, the required premium rate for the base plan scenario decreased from 0.66% to 0.57%. Accordingly, WA Cares states that “a solvent fund will have sufficient expected revenue, based on the current law premium rate [0.58%], to pay all expected future program benefits and expenses over the projection period [through June 30, 2098].”
Milliman was tasked with updating certain assumptions, but not all of them. Left unsaid are the expenses that have yet to be included in the payroll tax rate:
There is still no margin
There is still no portability
To support a supplemental private market, WA Cares must upgrade to a more costly inflation option
WA Cares continues to mislead the public into thinking there is “no deductible”; maintaining this promise will cost more
The assumptions use a benefit trigger proxy that may understate the impact of cognitive impairment claims