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Separation (employment ending)

General information and requirements

Updated 3/2021

Applicable to

  • Employees and their covered dependents when the employee terminates employment.

Relevant Rule

  • The employer contribution toward PEBB insurance coverage ends when the employment relationship is terminated. As long as the employing agency has no anticipation that the employee will be rehired, the employment relationship is terminated on the date specified in an employee's letter of resignation, on the date specified in any contract or hire letter, or on the effective date of an employer-initiated termination notice (WAC 182-12-131(7)(b)).
  • The employer contribution toward PEBB benefits cease for employees and their enrolled dependents the last day of the month in which employees are eligible for the employer contribution under this section.
    Exception: If the employing agency deducted the employee's premium for PEBB insurance coverage after the employee was no longer eligible for the employer contribution, PEBB insurance coverage ends the last day of the month for which employee premiums were deducted.
  • The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives the employee and their covered dependents the right to continue coverage by self-paying premiums to HCA (WAC 182-12-131 and WAC 182-12-146).
  • Retiring employees may choose to elect PEBB retiree coverage, if eligible (WAC 182-12-171).
Em​​ployer must... ...no later than... ...or this will happen
Complete C-8 worksheet 30 days after the date employment ends or as soon as the employee's end date is known. Eligibility errors may occur and the employee will not receive the required notice and information provided in the worksheet.
Terminate employee's PEBB insurance coverage in PAY1. Immediately after the date employment ends or as soon as the employee's end date is known. The Continuation of Coverage Election Notice will be delayed, resulting in increased employer cost for coverage, insurance coverage enrollment delays, and possible payment hardships. See Loss of Eligibility (Policy 19-1, Addendum 19-1A) for more information.

HCA will send the employee the Continuation of Coverage Election Notice in the mail after the employee coverage has been terminated in PAY1. (This can take up to 14 days after insurance coverage has been terminated in PAY1).

Empl​oyees applying for COBRA must... ...no later than... ...or this will happen
Complete the COBRA Continuation of Coverage form. 60 days after the mailing date on the Continuation of Coverage Election Notice. PEBB insurance coverage will end on the last day of the month in which the employee lost eligibility for the employer contribution.
Mail or hand-deliver the COBRA Continuation of Coverage form to the PEBB Program (address provided in packet). 60 days after the mailing date on the Continuation of Coverage Election Notice. Lose right to continue coverage.
Make first payment to HCA for continuation of coverage. 45 days after the date coverage is elected. Lose right to continue coverage.

Additional information

Employees who have...​ ...may... ...no later than
A spouse or state-registered domestic partner also covered by PEBB benefits. Enroll under the spouse or state-registered domestic partner's medical and or dental coverage as a dependent. 60 days after the date the employee lost eligibility for the employer contribution.
PEBB life insurance. Apply for portability or conversion coverage through MetLife. 31 days after the date the employee lost eligibility for the employer contribution OR 60 days from the date the employee's employer coverage ended, if retiring.
A spouse or state-registered domestic partner also covered by PEBB benefits. Transfer a portion of their optional life insurance to the spouse or state-registered domestic partner's PEBB coverage, up to the eligible limits. 31 days after the date the employee lost eligibility for the employer contribution.
A Medical Flexible Spending Arrangement (FSA) through Navia Benefit Solutions. Apply for Continuation of Coverage through Navia Benefit Solutions to extend their period of coverage, so they may claim expenses incurred after employment ends. 60 days after the date the employee lost eligibility for the employer contribution.
A spouse or state-registered domestic partner also covered by PEBB benefits. Enroll in or change their election for a Medical FSA. 60 days after the date the employee lost eligibility for the employer contribution.

Employees applying for coverage

Employees applying for PEBB retiree coverage must... ...no later than... ...or this will happen
Complete the PEBB Retiree Coverage Election form to enroll in or defer coverage. 60 days after employer-paid, COBRA, or continuation coverage ends. Lose future right to enroll in PEBB retiree coverage.
Mail, hand-deliver, or fax the Retiree Coverage Election form to the PEBB Program (deliver to the address provided in the guide or fax to 360-725-0771). 60 days after employer-paid, COBRA, or continuation coverage ends. Lose future right to enroll in PEBB retiree coverage.
Make the first full payment to HCA for continuation of coverage (if not electing pension deduction from Department of Retirement Systems). 45 days after the date coverage is elected. Lose future right to enroll in PEBB retiree coverage.

*The employee may access the Retiree Enrollment Guide and enrollment forms on the PEBB website or call PEBB Customer Service (1-800-200-1004) to request a packet.

Guidance resources

  • Employees retiring under plans administered by the Department of Retirement Systems must contact DRS for information about retirement eligibility. Information is available at www.drs.wa.gov or by calling their toll-free number at 1-800-547-6657.
  • The employee may contact the PEBB Program at 1-800-200-1004 to request a Retiree Enrollment Guide.
  • Special Open Enrollment Guidance (Policy 45-2, Addendum 45-2A)
  • Loss of Eligibility (Policy 19-1, Addendum 19-1A)
  • Lower Limit and Current Process Calendar: 2020 | 2021

Forms

Premium surcharge attestations

  • Premium Surcharge Change form: 2021
  • Premium Surcharge Help Sheet: 2021
  • Spousal Plan Calculator: 2021 (print version)

Rates

  • Life Insurance: 2021
  • Active Employees: 2021 (state agency and higher education institutions)
  • Retiree: 2021 (Medicare and Non-Medicare)
  • COBRA: 2021

System keying in PAY1

PersPay knowledge base

WAC references and their general subject matter

  • 182-08-198 - When may a subscriber change health plans?
  • 182-12-131 - How do eligible employees maintain the employer contribution toward insurance coverage?
  • 182-12-146 - What options for continuation of coverage are available to subscribers and dependents who become eligible under COBRA?
  • 182-12-171 - When are retiring employees eligible to enroll in retiree insurance?
  • 182-12-262 - When can a subscriber enroll or remove eligible dependents?