What happens if I stop working?

Your coverage is tied to your eligibility for the “employer contribution” (i.e., what your employer pays toward your coverage). When you stop working it’s called “terminating employment.” Whether it’s you or your employer who terminates your employment, you lose eligibility and may also lose your benefits.

This page helps you understand when coverage ends and what options are available.

When does my coverage end?

Your and your dependent's PEBB benefits end the last day of the month that:

  • You lose eligibility for the employer contribution.
  • Your employment relationship is terminated.

The employment relationship is terminated on the date:

  • Listed in your letter of resignation.
  • Listed in any contract or hire letter.
  • Of an employer-initiated termination notice.

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?

  • 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 post-tax 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 of low-cost coverage from Medicaid or the Children's Health Insurance Program (CHIP). 

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 Medical 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.

When does my eligibility for FSA or DCAP end?

On the last day of the month you lose coverage or go on unapproved leave.

What about filing claims?

For your FSA, you will be able to claim only expenses that happened while you were employed, up to your remaining benefit (account balance) — unless you are eligible to continue your FSA under PEBB Continuation Coverage, through Navia Benefit Solutions. To learn more, visit Navia's website or call 1-800-669-3539.

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

What happens to my HSA?

Any unspent health savings account (HSA) funds will stay available to you, unless you close your account. However, no one can contribute to your HSA. You can use your HSA funds on qualified medical expenses, or you can leave them for the future.

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.