Paying for benefits

Find out how to pay for your PEBB retiree benefits.

How do I pay for coverage?

You can help ensure that your payments are made on time and avoid disruptions in your coverage by using pension deduction through the Department of Retirement Systems (DRS) or automatic bank account withdrawals. Here are your payment options:

  • DRS pension deduction
    Your premium and any applicable surcharges are taken from your end-of-the-month pension check. For example, if your coverage takes effect January 1, your January 31 check will show your deductions for January.
  • Automatic bank account withdrawals
    You cannot make your initial premium payment to enroll in PEBB retiree coverage through Electronic Debit Service. You must complete and return an Electronic Debit Service Agreement to the HCA. Approval takes six to eight weeks, so you must continue to pay the total due shown on your invoices until you receive a letter from the HCA with your electronic debit start date.
  • A personal check or money order
    Please make your check payable to Health Care Authority and send it to:

Health Care Authority
P.O. Box 42695
Olympia, WA 98504-2695

Note: HCA collects premiums for the full month, and will not prorate them for any reason, including when a member dies before the end of the month. You may not have a gap in coverage so your first payment for premiums will be retroactive to the first of the month after your other coverage ends.

Can I use a VEBA account to pay my premiums?

If you have a Voluntary Employees’ Beneficiary Association Medical Expense Plan (VEBA MEP) account, you can set up automatic reimbursement of your qualified insurance premiums. The VEBA MEP does not pay your monthly premiums directly to the PEBB Program.

Qualified insurance premiums include medical, dental, vision, Medicare supplement, Medicare Part B, Medicare Part D, and tax-qualified long-term care insurance (subject to annual IRS limits). Retiree term-life insurance premiums are not eligible for reimbursement from your VEBA MEP account.

Note: It is important that you notify the VEBA MEP when your premiums change or if you become rehired by the employer that contributed to your account. Qualified medical care expenses and premiums you incur while you are re-employed by the employer that contributed to your account are not eligible for reimbursement from your account. Also, if you enroll in a consumer-directed health plan (CDHP) to be eligible to make or receive contributions to a Health Savings Account (HSA), you must elect “limited-purpose” VEBA MEP coverage. Choosing limited-purpose VEBA MEP coverage is not the only HSA contribution eligibility requirement.

Only the following types of expenses can be reimbursed from your VEBA MEP account while coverage is limited:

  • Standard dental care services (not related to a medical condition or accident), including dentures
  • Orthodontia
  • Routine eye exams, contact lenses, and eyeglasses (excluding initial lenses and standard frames after cataract surgery.)

What happens if I miss a payment?

You must pay the premiums and any applicable surcharges for your PEBB coverage when due. If you pay late or do not pay in full, we will cancel your coverage back to the last day of the month in which we received your full payment for the premium and any applicable surcharges. (Partial payments are not considered full payments.) If your insurance coverage is cancelled, coverage for your dependents also will be cancelled. You cannot enroll again in PEBB coverage unless you regain eligibility.