What happens if I stop working?

When does my coverage end?

To keep eligibility for the employer contribution toward your PEBB benefits, you must have at least eight hours of pay status in each month. Typically, one full day of work or a full day of paid leave (vacation or sick leave) covers this requirement.

If you cannot maintain at least eight hours of pay status in a PEBB benefits-eligible position, then your insurance coverage (for you and any enrolled dependents) will end on the last day of the month in which you are in pay status for at least eight hours.

Exception: If your employing agency deducted your premium for PEBB insurance coverage after you were no longer eligible for the employer contribution, PEBB benefits end the last day of the month for which the employee premiums were deducted.

What are my options?

• If you are laid off: You would be eligible to continue any combination of medical, dental, vision, life insurance, and accidental death and dismemberment (AD&D) insurance under PEBB Continuation Coverage (Unpaid Leave) for up to 29 months, as described in Washington Administrative Code (WAC) 182-12-133. You would be responsible to self-pay the full monthly premium and applicable premium surcharges. The PEBB Program will mail you a booklet that describes this option and includes the enrollment form.
• You may be eligible to enroll on your spouse’s, state-registered domestic partner’s, or parent’s PEBB coverage as a dependent.
• You may be eligible for PEBB retiree insurance coverage.
• You and your dependents may be able to temporarily continue your PEBB coverage by self-paying the premiums and applicable premium surcharges on a posttax basis. This is called PEBB Continuation Coverage and your employer will make no contribution toward the premiums.
• The Health Insurance Marketplace offers private health insurance options. You can find out if you're eligible for a tax credit that lowers your monthly premiums and out-of-pocket costs. You’ll also learn if you qualify for free or low-cost coverage from Medicaid (called Apple Health in Washington State), the Children’s Health Insurance Program (CHIP), or Cascade Care plans. Coverage through the Washington Health Benefit Exchange may cost less than PEBB Continuation Coverage. Being offered PEBB Continuation Coverage won’t limit your eligibility for coverage or for a tax credit through the Marketplace.

More about continuation coverage

PEBB Continuation Coverage includes COBRA and Unpaid Leave. COBRA and Unpaid Leave temporarily extend PEBB health plan coverage when your or your dependent’s PEBB coverage ends due to a qualifying event. You can enroll in only one of these options at a time.

What happens to my FSA or DCAP?

You are no longer eligible to contribute to your Flexible Spending Arrangement (FSA), Limited Purpose FSA, or Dependent Care Assistance Program (DCAP) when:

• Your PEBB coverage ends.
• You go on unpaid leave that is not approved under the Family and Medical Leave Act (FMLA), the Washington Paid Family and Medical Leave program, or military leave.

FSAs

You will be able to claim expenses that happened while you were employed.

You may be able to continue participating in your FSA by enrolling in PEBB Continuation Coverage (COBRA) and making posttax contributions directly to Navia Benefit Solutions for the rest of the year. If you are eligible for this option, Navia Benefit Solutions will mail a COBRA election notice to you. You can find more information about how FSAs work through PEBB Continuation Coverage and in the FSA Enrollment Guide.

DCAP

You may continue to submit claims for eligible expenses through March 31 of the following year, as long as the expenses allow you to attend school full-time, look for work, or work full-time. Claims may be submitted up to your account balance. You cannot incur expenses after December 31. There are no continuation coverage rights for DCAP.

What happens to my HSA?

Your HSA still belongs to you; however, your employer will no longer contribute to it when your employment ends.

If eligible, you can choose to continue enrollment in your consumer-directed health plan (CDHP) through PEBB Continuation Coverage and use your HSA dollars to pay for health insurance premiums and health care expenses. You can also continue to use your HSA for health care expenses even if you do not have other coverage.

Note: HealthEquity may charge you a monthly fee if you maintain your HSA without being enrolled in a PEBB CDHP. You can learn more in The Complete HSA Guidebook or call HealthEquity at 1-877-873-8823 (for Kaiser members) or 1-844-351-6853 (for UMP members) with questions about how your HSA works when coverage ends.

If you set up automatic payroll deductions to your HSA, contact your payroll office to stop them. If you set up direct deposits to your HSA, call HealthEquity to stop them.

What happens to my life insurance, AD&D insurance, LTD insurance, or auto/home insurance?

Each of these coverages will be handled a little differently:

• Life and AD&D insurance: Your life insurance and AD&D insurance may be continued on a self-pay basis under PEBB Continuation Coverage (Unpaid Leave). If you do not continue enrollment in PEBB Continuation Coverage (Unpaid Leave), you can choose to continue life insurance through MetLife under portability or conversion. MetLife will send information to you, which will include instructions on how to continue coverage.
• LTD insurance: Your LTD insurance will end the last day of the month in which you were in pay status for at least eight hours. You may not continue employer-paid or employee-paid LTD insurance under PEBB Continuation Coverage.
• Auto/home insurance: Call Liberty Mutual at 1‐800‐706‐5525 or email Liberty Mutual to ask about alternate payment options to continue your coverage.