PEB Board considers Medicare plan changes and premiums

On June 9, 2022, the Public Employees Benefits Board (PEB Board) met virtually. The meeting was open to the public via Zoom.

Meeting recap

Highlights are listed below. See the briefing book for all presentation materials.

Health Care Authority staff introduced the following proposed resolutions, which will be scheduled for action by the Board at its June 30 meeting:

  • 2022-05: IRS Minimum Deductible for Consumer Directed Health Plan: Beginning January 1, 2023, the deductible in the UMP Consumer Directed Health Plan (CDHP) will be increased to $1,500 for single subscribers and $3,000 for all other tiers.

(This deductible increase is required to comply with IRS rules so an enrollee can make eligible health savings account contributions in 2023.)

  • 2022-06: UMP CDHP Pharmacy Preventive Care: Beginning January 1, 2023, the UMP Consumer Directed Health Plan (CDHP) will cover the drug list presented to the Board on June 9, 2022, prior to meeting the plan deductible. Thereafter, HCA may alter this drug list to allow for pre-deductible coverage based on clinical evaluation and in accordance with IRS guidance.
  • 2022-07: Medicare Premium – Explicit Subsidy: The PEB Board endorses the calendar year 2023 monthly Medicare Explicit Subsidy of $183 or 50 percent of premium, whichever is less.
  • 2022-08: Medicare Premium – KPNW: The PEB Board endorses the Kaiser Foundation Health Plan of the Northwest Medicare plan premium.
  • 2022-09: Medicare Premium – KPWA: The PEB Board endorses the Kaiser Foundation Health Plan of Washington Medicare plan premiums.
  • 2022-10: Medicare Premium – UHC MA-PD: The PEB Board endorses the UnitedHealthcare Medicare Advantage plus Prescription Drug (MA-PD) plan premiums.
  • 2022-11: Medicare Premium – Premera: The PEB Board endorses the Premera Medicare Supplement plan premiums.
  • 2022-12: Uniform Medical Plan Classic Medicare Premium and Plan Closure: The PEB Board endorses the Uniform Medical Plan (UMP) Classic Medicare premium for plan year 2023. Effective January 1, 2024, UMP Classic is closed to enrollment for all current and future retirees, survivors, or their dependents who are enrolled in both Parts A and B of Medicare and who are included in the PEBB Medicare risk pool as described in RCW 41.05.080(3). See more details about this proposal. 
  • 2022-13: Allowing a One-time Plan Change for Certain Subscribers Enrolled in UMP Classic: A subscriber enrolled in PEBB retiree insurance coverage who is enrolled, or whose dependent is enrolled, in both Parts A and B of Medicare and Uniform Medical Plan (UMP) Classic is allowed a one-time plan change anytime between December 1, 2022 and December 31, 2023 (in addition to the annual or a special open enrollment) to elect one of the following PEBB retiree insurance coverage options:
    • Medicare Advantage (MA) Plan
    • Medicare Advantage Prescription Drug (MA-PD) Plan
    • Medicare Supplement Plan

The new PEBB medical plan coverage will begin the first day of the month following the date the required forms are received. Non-Medicare enrollees on the subscriber’s account will remain enrolled in the UMP Classic except in the case of an MA plan where non-Medicare enrollees will be enrolled in a plan with the same contracted vendor.

HCA staff also provided presentations on the following:

  • Update on the 2023 annual procurement process, including proposed changes from carriers
  • Overview of proposed UMP benefit changes for 2023
  • Medicare premium overview
  • Comparison of Medicare benefit offerings

The Board met in executive session for an hour during the meeting.

Next meeting

The next public meeting of the PEB Board is scheduled for 9 a.m. to 2 p.m. on June 30. Board members and the public may attend virtually via Zoom. The link or call-in number for the virtual meeting will be noted on the meeting agenda. The meeting agenda will be posted on the PEB Board Meetings and materials webpage.