One America – Washington state Care Solutions applications: Year-end updateBenkis Barrueta
From One America
As the end of the year approaches, we want to update you on our progress in responding to the significant influx of new business OneAmerica received, driven in part by pricing and regulatory changes and the state of Washington’s Cares Fund.
We understand the impact that continued processing delays have on your business and in serving the needs of your clients. Our goal is to be transparent in our approach to addressing these challenges.
Previously, we communicated our decision to temporarily suspend sales of our Asset Care and Annuity Care products in Washington state, effective Aug. 14, 2021. In October, we indicated we were unable to guarantee that applications already received would be fully processed with a policy inforce prior to the Nov. 1 deadline established by the state. Additionally, the products available in Washington prior to Aug. 14 do not comply with the new 7702 federal tax code and therefore cannot be offered to clients after Dec. 31, 2021.
Taking into consideration Washington’s timeline of having coverage inforce by Nov. 1, in addition to the new federal tax code, underwriting requirements that are still outstanding and remaining days left in the year, we’ve made the difficult decision to stop processing pending Washington cases so that we can focus on returning the overall business to normal processing times as quickly as possible.
We continue to monitor the evolving sales and regulatory environment, and in the near future expect to communicate a date for the Care Solutions product portfolio sales to resume in Washington. At that time, you may resubmit an application for your clients to be considered for coverage. OneAmerica remains fully committed to helping ensure that our mutual clients have access to our asset-based long-term care strategies.