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?

Yes, if you have a VEBA account (health reimbursement arrangement), you can set up automatic reimbursement of your qualified insurance premiums. Visit your VEBA plan’s web site or contact its customer care center for instructions. Your VEBA plan will 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 account.

Note: It is important that you notify your VEBA plan when your premiums change or if you become rehired by the employer that contributed to your account. Depending on your employer’s plan design, certain 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. However, dental, vision, and tax-qualified long-term care premiums and expenses incurred during re-employment are eligible for reimbursement.

Also, if you enroll in a consumer-directed health plan (CDHP) and want to become eligible to make or receive contributions to a health savings account (HSA), you must elect “limited HRA coverage.” Electing limited HRA coverage is not the only HSA contribution eligibility requirement.

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

  • CDHP or other HSA-qualified high-deductible health plan (HDHP) premiums
  • Dental premiums and services, including dentures
  • Orthodontia
  • Vision premiums and services
  • Transportation costs related to a permitted expense

What happens if I miss a payment?

You must pay the premiums and any applicable surcharges for your PEBB coverage when due. The monthly premium will be considered unpaid if there is one of the following occurs:

  • No payment of premium or premium surcharge is paid and the monthly premium remains unpaid for 30 days; or
  • A premium payment or premium surcharge is underpaid by an amount greater than what would be considered an insignificant shortfall (described in WAC 182-08-015) and the monthly premium remains underpaid for 30 days past the date the monthly premium was due.

If either of the events listed above occur, the PEBB Program will terminate your PEBB insurance coverage retroactive to the last day of the month for which the monthly premium and any premium surcharge was paid. If you PEBB insurance coverage is terminated, coverage for your dependents will also be terminated. You cannot enroll again in PEBB insurance coverage unless you regain eligibility.