Frequently asked questions about 8201
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8201 guarantees long-term care funds will be there when we need them.
Current law limits investment of the Trust Fund to only low-return choices, like government bonds and savings certificates. Amendment 8201 allows the Trust Fund to be invested to produce higher returns.
This proven method would be managed by the independent, nonpartisan Washington State Investment Board, which is bound by the highest fiduciary standards.
Under 8201, investment returns cannot be legally spent on any other programs, they must be spent on long-term care.
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Under this measure, the long-term care fund is projected to earn $67 billion more over the next 50 years without costing taxpayers a dime.
And it decreases the chance of increasing premiums for Washington’s long-term care benefits for seniors and people with disabilities.
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8201 would allow an independent, nonpartisan board (Washington State Investment Board) that successfully manages $200 billion in Washington’s public pensions and disability funds to administer the long-term care fund, maximizing stability and returns.
Other states, including California, New York, and Oregon, also professionally manage similar long-term public funds with strong results. In each case, professional investment has increased returns, reduced taxpayer risk, and preserved benefits.
The Washington State Investment Board’s strategies take into account market ups and downs, with an average 7% return per year.
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With hundreds of billions in cuts to Medicaid threatened by Congress, it is even more critical that we shore up and preserve Washington state’s independent long-term care program.
Medicaid is the largest funder of long-term care in the nation, with tens of thousands of vulnerable seniors and people with disabilities reliant on it for access to long-term care in Washington state alone.
8201 will make our long-term care fund more reliable and secure.
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A super majority of Democrats and Republicans in the legislature approved this common sense approach to smarter financial management of Washington’s long term care benefits.
They don’t always agree, but both Governor Bob Ferguson and Senate Republican Leader John Braun support this measure to grow this fund for the care of 4 million Washingtonians when they are aging or disabled.