Vote ‘yes’ on Measure 8201: Change will strengthen state’s long-term care benefit

By Karen Kiessling

It is rare when Democrats and Republicans agree on anything these days, so it is noteworthy that a bipartisan supermajority of state lawmakers voted in support of Senate Joint Resolution 8201 to amend our state constitution to allow the state’s Long-Term Care Trust Fund to be invested in a diversified portfolio which includes market-based securities.

Because current law limits investment of the Trust Fund to only low-return choices, like government bonds and savings certificates, this change requires approval by voters. The ballot measure, known as Senate Joint Resolution 8201, would allow Washington’s Long-Term Care Trust Fund (also known as WA Cares) to be invested by the Washington State Investment Board in the same successful manner as state pension funds for firefighters, law enforcement officers and teachers, as well as dozens of other public benefit funds.

The Washington State Investment Board is an independent, nonpartisan board that manages more than $200 billion of assets including the investments of 17 retirement plans and several other large public funds. The board has one of the strongest track records in the country. Using a long-term, diversified investment strategy, board-managed funds have returned an average of more than 8% over the last 25 years.

No matter what you think of WA Cares, we need to make sure the fund is managed in the most responsible way, delivering the best returns to the 4 million Washingtonians who are contributing premiums today. According to an independent actuarial’s projection analysis, increasing returns by even just 1% would boost the state WA Cares Fund by $67 billion over 50 years, increasing funding for aging people who need long-term care, and people with disabilities. Increasing the fund’s growth is the best way to keep premiums low and even opens the door to the potential to make the benefit more generous. Measure 8201 further protects taxpayers by legally restricting the fund to be used only for services and support for aging adults and people with disabilities, not raided for any other purpose.

The cost of care drains most families’ savings and forces many to leave the workforce to care for loved ones. The financial, physical and emotional challenges of providing care for a loved one cause enormous stress not only for the person needing support, but on their families. With Medicaid funds covering 3 in 8 people with disabilities and 3 in 5 nursing home residents, what will happen when federal cuts take effect? Cathy Knight, state director of the Washington Association of Area Agencies on Aging, says these cuts mean likely restrictions on who can get Medicaid coverage here in Washington: “The ripple effect is going to be disastrous in the years to come. … I think people are going to die.”

Fortunately, at least when it comes to long-term care, Washingtonians will have a safety net to turn to in the years ahead. When we, or a loved one, need help with daily living activities because of a serious injury, disease, disability or the normal challenges that can come along as we age, our state long-term care benefit will be there. Allowing professional investment ensures that benefits stay affordable and available over time – especially as costs of care rise.

With so much on the line, it is important to strengthen our long-term care safety net by supporting SJR 8201. I hope Eastern Washington voters will join me, state and county treasurers, first responders like firefighters and nurses, and more than 100 other organizations and leaders that advocate for seniors and disabled people, retirees and working families in voting to approve Senate Joint Resolution 8201.

Karen Kiessling, of Pullman, serves on the Planning and Management Council of Aging and Long Term Care of Eastern Washington which is the Area Agency on Aging for Ferry, Pend Oreille, Spokane, Stevens, and Whitman Counties. Kiessling is the Whitman County representative on that board. Kiessling is a former teacher and also previously served as mayor of the city of Pullman.