There’s a reason companies got away from offering these policies, they were losing money on them.
You were right in one thing: that yes, it’s going to be insolvent. Why? Because the idiots in legislature were convinced by the anti-safety-net bastards to add an exemption carve-out that fucked the entire financial plan. If you let anyone opt out of Medicare it wouldn’t have existed for six weeks. And now those bastards have the nerve to turn around and say oohhhhh noooooo it’s not even fiscally stable!
But, homeless industrial complex? Ridiculous conspiracy theory nonsense.
For anyone not blinded by that nonsense - the WA LTC benefit would fill in the gaps for people who do not qualify for Medicare long term care, which is basically everyone who is going to need the Medicare benefit, and keep them from going bankrupt, destroying their family or simply dying for lack of care in that year it takes before Medicare kicks in for them.
There was a brief window where you could get LTC insurance from any provider and use it to opt out of the tax. High income earners did that because it was cheaper than paying the tax and also because receiving the benefit required you to stay in WA. The opt-out window has since closed, and if you haven't opted out by now, you will forever pay that tax if you work in WA.