Original Notice.

     Preproposal statement of inquiry was filed as WSR 11-12-081.

     Title of Rule and Other Identifying Information: Rules related to enrollment in chapter 182-08 WAC; eligibility in chapter 182-12 WAC; and appeals in chapter 182-16 WAC.

     Hearing Location(s): Health Care Authority, Cherry Street Plaza Building, Conference Room 106A (Apple Room), 626 8th Avenue, Olympia, WA 98504 (metered public parking is available street side around building. A map is available at http://maa.dshs.wa.gov/pdf/CherryStreetDirectionsNMap.pdf or directions can be obtained by calling (360) 725-1000), on October 25, 2011, at 10:00 a.m.

     Date of Intended Adoption: Not sooner than October 26, 2011.

     Submit Written Comments to: HCA Rules Coordinator, P.O. Box 45504, Olympia, WA 98504-5504, delivery 626 8th Avenue, Olympia, WA 98504, e-mail arc@hca.wa.gov, fax (360) 586-9727, by 5:00 p.m. on October 25, 2011.

     Assistance for Persons with Disabilities: Contact Kelly Richters by October 18, 2011, TTY/TDD (800) 848-5429 or (360) 725-1307 or e-mail kelly.richters@hca.wa.gov.

     Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Annual review of public employees benefits board (PEBB) rules.

     These proposed amendments will:

     1. Clarify the administration of premium refunds and the disposition of employee premiums if a state agency does not provide notice of eligibility to an employee or fails to enroll an employee as required and add instruction for making a correction.

     2. Align administration of special enrollment rules, the employee waiver rule and the date coverage begins or ends to federal regulations and the state of Washington salary reduction plan.

     3. Implement state legislation, including implementation of a health savings account.

     4. Implement the PEBB policy designating uniform medical plan (UMP) classic as the medical plan employees will be enrolled in if they fail to select a medical plan when newly eligible.

     5. Provide a deadline for employees to notify the DCAP or FSA administrator of their transfer to another state agency.

     6. Remove the requirement for a retiree to maintain enrollment in retiree life insurance while eligible for the employer contribution toward PEBB active employee life insurance.

     7. Make the rules clearer and technically correct. This includes minor editing and the following specific changes:

     a. Several titles are amended to be more congruent with the content.

     b. WAC 182-12-208 now reflects the contractual requirement for retirees to maintain dental enrollment for two years.

     c. To prevent confusion, WAC 182-08-196 no longer refers to UMP.

     d. WAC 182-12-171 "age requirement" and "length of service" are replaced with "retirement eligibility criteria."

     e. Clarify that employer group life insurance and long-term disability appeals go to the PEBB appeals committee.

     f. Removed reference to the timeframe for enrollment in long-term care coverage from WAC 182-08-197.

     Reasons Supporting Proposal: Comply with federal regulation, implement state legislation and manage budget shortfalls.

     Statutory Authority for Adoption: RCW 41.05.160.

     Statute Being Implemented: Chapter 8, Laws of 2011 (2ESB 5773).

     Rule is necessary because of federal law, HIPAA, PPACA, IRC.

     Name of Proponent: Health care authority, governmental.

     Name of Agency Personnel Responsible for Drafting and Implementation: Barbara Scott, 676 Woodland Square Loop, Lacey, WA, (360) 923-2642; and Enforcement: Mary Fliss, 676 Woodland Square Loop, Lacey, WA, (360) 923-2640.

     No small business economic impact statement has been prepared under chapter 19.85 RCW. The joint administrative rules review committee (JARRC) has not requested the filing of a small business economic impact statement, and there will be no costs to small businesses.

     A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 does not apply to health care authority rules unless requested by JARRC or applied voluntarily.

September 21, 2011

Kevin M. Sullivan

Rules Coordinator

OTS-4243.4

AMENDATORY SECTION(Amending Order 10-02, filed 10/6/10, effective 1/1/11)

WAC 182-08-015   Definitions.   The following definitions apply throughout this chapter unless the context clearly indicates other meaning:

     (("Administrator" means the administrator of the health care authority (HCA) or designee.))

     "Agency" means the health care authority.

     "Benefits eligible position" means any position held by an employee who is eligible for benefits under WAC 182-12-114, with the exception of employees who establish eligibility under WAC 182-12-114 (2) or (3)(a)(ii).

     "Board" means the public employees benefits board established under provisions of RCW 41.05.055.

     "Comprehensive employer sponsored medical" includes insurance coverage continued by the employee or their dependent under COBRA. It does not include an employer's retiree coverage, with the exception of a federal retiree plan.

     "Creditable coverage" means coverage that meets the definition of "creditable coverage" under RCW 48.66.020 (13)(a) and includes payment of medical and hospital benefits.

     "Defer" means to postpone enrollment or interrupt enrollment in a PEBB medical insurance by a retiree or eligible survivor.

     "Dependent" means a person who meets eligibility requirements in WAC 182-12-260.

     "Dependent care assistance program" or "DCAP" means a benefit plan whereby state and public employees may pay for certain employment related dependent care with pretax dollars as provided in the salary reduction plan authorized in chapter 41.05 RCW.

     "Director" means the director of the health care authority (HCA) or designee.

     "Effective date of enrollment" means the first date when an enrollee is entitled to receive covered benefits.

     "Employer group" means those employee organizations representing state civil service employees, counties, municipalities, political subdivisions, tribal governments, school districts, and educational service districts participating in PEBB insurance coverage under contractual agreement as described in WAC 182-08-230.

     "Employing agency" means a division, department, or separate agency of state government, including an institution of higher education; a county, municipality, school district, educational service district, or other political subdivision; or a tribal government covered by chapter 41.05 RCW.

     "Enrollee" means a person who meets all eligibility requirements defined in chapter 182-12 WAC, who is enrolled in PEBB benefits, and for whom applicable premium payments have been made.

     "Faculty" means an academic employee of an institution of higher education whose workload is not defined by work hours but whose appointment, workload, and duties directly serve the institution's academic mission; as determined under the authority of its enabling statutes, its governing body, and any applicable collective bargaining agreement.

     "Health plan" or "plan" means a medical or dental plan developed by the public employees benefits board and provided by a contracted vendor or self-insured plans administered by the HCA.

     "Institutions of higher education" means the state public research universities, the public regional universities, The Evergreen State College, the community and technical colleges, and includes the higher education personnel board and the state board for community and technical colleges.

     "Insurance coverage" means any health plan, life insurance, long-term care insurance, long-term disability insurance, or property and casualty insurance administered as a PEBB benefit.

     "Layoff," for purposes of this chapter, means a change in employment status due to an employer's lack of funds or an employer's organizational change.

     "LTD insurance" includes basic long-term disability insurance paid for by the employing agency and long-term disability insurance offered to employees on an optional basis.

     "Life insurance" includes basic life insurance paid for by the employing agency, life insurance offered to employees on an optional basis, and retiree life insurance.

     "Medical flexible spending arrangement" or "medical FSA" means a benefit plan whereby state and public employees may reduce their salary before taxes to pay for medical expenses not reimbursed by insurance as provided in the salary reduction plan authorized in chapter 41.05 RCW.

     "Open enrollment" means a time period when: Subscribers may apply to transfer their enrollment from one health plan to another; a dependent may be enrolled; a dependent may be removed from coverage; or an employee who previously waived medical may enroll in medical. Open enrollment is also the time when employees may enroll in or change their election under the DCAP, the medical FSA, or the premium payment plan. An "annual" open enrollment, designated by the ((administrator)) director, is an open enrollment when all PEBB subscribers may make enrollment changes for the upcoming year. A "special" open enrollment is triggered by a specific life event. For special open enrollment events as they relate to specific PEBB benefits, see WAC 182-08-198, 182-08-199, 182-12-128, 182-12-262.

     "PEBB" means the public employees benefits board.

     "PEBB appeals committee" means the committee that considers appeals relating to the administration of PEBB benefits by the PEBB program. The ((administrator)) director has delegated the authority to hear appeals at the level below an administrative hearing to the PEBB appeals committee.

     "PEBB benefits" means one or more insurance coverage or other employee benefit administered by the PEBB program within the HCA.

     "PEBB program" means the program within the HCA which administers insurance and other benefits for eligible employees of the state (as defined in WAC 182-12-114), eligible retired and disabled employees of the state (as defined in WAC 182-12-171), eligible dependents (as defined in WAC 182-12-250 and 182-12-260) and others as defined in RCW 41.05.011.

     "Premium payment plan" means a benefit plan whereby state and public employees may pay their share of group health plan premiums with pretax dollars as provided in the salary reduction plan.

     "Salary reduction plan" means a benefit plan whereby state and public employees may agree to a reduction of salary on a pretax basis to participate in the DCAP, medical FSA, or premium payment plan as authorized in chapter 41.05 RCW.

     "Seasonal employee" means an employee hired to work during a recurring, annual season with a duration of three months or more, and anticipated to return each season to perform similar work.

     "State agency" means an office, department, board, commission, institution, or other separate unit or division, however designated, of the state government and all personnel thereof. It includes the legislature, executive branch, and agencies or courts within the judicial branch, as well as institutions of higher education and any unit of state government established by law.

     "Subscriber" means the employee, retiree, COBRA beneficiary or eligible survivor who has been designated by the HCA as the individual to whom the HCA and contracted vendors will issue all notices, information, requests and premium bills on behalf of enrollees.

     "Termination of the employment relationship" means that an employee resigns or an employee is terminated and the employing agency has no anticipation that the employee will be rehired.

     "Tribal government" means an Indian tribal government as defined in Section 3(32) of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, or an agency or instrumentality of the tribal government, that has government offices principally located in this state.

     "Waive" means to interrupt an eligible employee's enrollment in a PEBB health plan because the employee is enrolled in other comprehensive group coverage or is on approved educational leave (see WAC 182-12-128 and 182-12-136).

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-08-015, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-08-015, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-08-015, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-08-015, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.068. 06-23-165 (Order 06-09), § 182-08-015, filed 11/22/06, effective 12/23/06. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-08-015, filed 8/26/04, effective 1/1/05; 03-17-031 (Order 02-07), § 182-08-015, filed 8/14/03, effective 9/14/03. Statutory Authority: Chapter 41.05 RCW. 96-08-042, § 182-08-015, filed 3/29/96, effective 4/29/96.]

     Premium payments. PEBB premiums ((for retiree, COBRA or PEBB continuation coverage)) begin to accrue the first of the month in which PEBB insurance coverage is effective.

     Premium is due for the entire month of insurance coverage and will not be prorated during ((the)) any month ((of death or loss of eligibility of the enrollee except for life insurance premiums when the individual is eligible for life conversion)).

     (1) A newly eligible employee must complete the appropriate enrollment forms to enroll or waive coverage within thirty-one days after becoming eligible as described in WAC 182-08-197.

     (a) If an employing agency does not notify an employee of his or her eligibility for benefits, as required in WAC 182-12-113, until after the thirty-one-day period has expired, the employing agency must:

     (i) Notify the employee of his or her eligibility for PEBB benefits as described in WAC 182-08-197(3); and

     (ii) Remit both the employer contribution and the employee contribution for medical premiums from the date benefits begin as described in WAC 182-12-114 to the HCA. A state agency may not collect from the employee any portion of the medical premium for months prior to the state agency's notification to the employee.

     (b) If an employing agency fails to enroll an employee as required in WAC 182-08-197, the employing agency must:

     (i) Correct the enrollment error; and

     (ii) Remit both the employer contribution and the employee contribution for medical premiums due for insurance coverage from the date PEBB benefits begin as described in WAC 182-12-114 to the HCA. A state agency may only collect the employee contribution for medical premiums for the three months prior to the month the state agency corrects the error.

     (c) If an employee elects optional coverage described in WAC 182-08-197 (2)(a) or (b), the employee is responsible for premiums from the month that the optional coverage begins.

     Premium refunds. PEBB premiums ((for employees, retirees, COBRA, or PEBB continuation coverage)) will be refunded using the following method:

     (((1))) (2) When ((any PEBB)) a subscriber submits an enrollment change affecting subscriber or dependent eligibility, ((such as for example: Death, divorce, or when no longer an eligible dependent as defined at WAC 182-12-260 no more than)) HCA may allow up to three months of accounting adjustments ((and)). HCA will refund to the individual or the employing agency any excess premium paid ((will be refunded to any individual or employing agency)) during the three month adjustment period, except as indicated in WAC 182-12-148(4).

     (((2) Notwithstanding subsection (1) of this section, the PEBB assistant administrator)) (3) If a PEBB subscriber, dependent, or beneficiary submits a written appeal as described in WAC 182-16-025, the PEBB assistant director or the PEBB appeals committee may approve a refund which does not exceed twelve months of premium ((if both)). The written appeal must provide proof of the following ((occur)):

     (((a) The PEBB subscriber or a dependent or beneficiary of a subscriber submits a written appeal to the PEBB appeals committee; and

     (b) Proof is provided that)) Extraordinary circumstances beyond the control of the subscriber, dependent or beneficiary made it virtually impossible to submit the necessary information to accomplish an enrollment change within sixty days after the event that created a change of premium.

     (((3) Errors resulting in)) (4) If a federal government entity retroactively determines that an enrollee is enrolled in coverage (for example medicare) the subscriber or beneficiary may be eligible for a refund of all premiums paid during the time he or she was enrolled under the federal program if approved by the PEBB assistant director or designee.

     (5) Accounts reflecting an underpayment to HCA must be ((reimbursed by)) paid, and are due from the employing agency ((or)), subscriber or beneficiary to the HCA. Upon request ((of an employing agency, subscriber, or beneficiary, as appropriate)), the HCA ((will)) may develop a repayment plan designed ((not)) to ((create undue)) reduce hardship ((on the employing agency or subscriber)).

     (((4))) (6) HCA errors will be ((adjusted)) corrected by returning ((the)) all excess premiums paid((, if any, to)) by the employing agency, subscriber, or beneficiary((, as appropriate)).

     (7) Employing agency errors will be corrected by returning all excess premiums paid by the employee or beneficiary.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-08-180, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-08-180, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-08-180, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-08-180, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-08-180, filed 8/26/04, effective 1/1/05; 03-17-031 (Order 02-07), § 182-08-180, filed 8/14/03, effective 9/14/03. Statutory Authority: Chapter 41.05 RCW. 96-08-042, § 182-08-180, filed 3/29/96, effective 4/29/96; Order 01-77, § 182-08-180, filed 8/26/77.]

     (1))) (a) Employees must notify their employing agency of their new health plan choice.

     (b) All other subscribers must notify the PEBB program of their new health plan choice.

     (c) The effective date of the change in health plan will be the first day of the month following the later of the date the health plan becomes unavailable or the date the form is received.

     (2) The PEBB program will change health plan enrollment as follows if the subscriber fails to select a new health plan as required under subsection (1) of this section:

     (a) Employees who fail to select a new ((medical or dental)) health plan within the ((prescribed)) required time period will be enrolled in a successor plan if one is available or will be enrolled in ((the Uniform Medical Plan, the Uniform Dental Plan, or)) a plan ((selected)) designated by the ((administrator, along with the employee's existing dependent enrollment)) director.

     (((2) Retirees and survivors eligible under WAC 182-12-250 or 182-12-265)) (b) All other subscribers who fail to select a new health plan within the ((prescribed)) required time period will be enrolled in a successor plan if one is available ((or will be enrolled in the Uniform Medical Plan, and the Uniform Dental Plan,)) or a plan ((selected)) designated by the ((administrator)) director.

     (3) Any subscriber ((assigned to)) enrolled in a health plan as described in subsection (2) of this ((rule)) section may not change health plans ((until the next open enrollment)) except as allowed in WAC 182-08-198.

     (((3) Enrollees in PEBB continuation coverage under WAC 182-12-133, 182-12-141, 182-12-142, 182-12-146, 182-12-148, or 182-12-270(2) must select a new health plan no later than sixty days after notification by the PEBB program. If enrollees fail to select a new health plan within sixty days of the notification, health plan coverage will end as of the last day of the month in which the plan is available.))

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-08-196, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-08-196, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-08-196, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-08-196, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-08-196, filed 7/27/05, effective 8/27/05. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-08-196, filed 8/26/04, effective 1/1/05; 03-17-031 (Order 02-07), § 182-08-196, filed 8/14/03, effective 9/14/03.]

     (a) Medical enrollment will be Uniform Medical Plan Classic;

     (b) Dental enrollment (if the employer group participates in PEBB dental) will be Uniform Dental Plan; and

     (c) Dependents will not be enrolled.

     (2) Employees who are newly eligible may enroll in optional insurance coverage (except for employees of employer groups that do not participate in life insurance or long-term disability insurance).

     (a) To enroll in the amounts of optional life insurance available without health underwriting, employees must return a completed life insurance enrollment form to their employing agency no later than sixty days after becoming eligible for PEBB benefits.

     (b) To enroll in optional long-term disability insurance without health underwriting, employees must return a completed long-term disability enrollment form to their employing agency no later than thirty-one days after becoming eligible for PEBB benefits.

     (c) ((To enroll in long-term care insurance with limited health underwriting, employees must return a completed long-term care enrollment form to the contracted vendor no later than thirty-one days after becoming eligible for PEBB benefits.

     (d))) Employees may apply for optional life((,)) and optional long-term disability((, and long-term care)) insurance at any time by providing evidence of insurability and receiving approval from the contracted vendor.

     (3) If an employing agency does not notify a newly eligible employee of his or her eligibility for PEBB benefits, as required in WAC 182-12-113, until after the thirty-one-day period described in subsection (1) of this section has expired, then the following must occur:

     (a) The employing agency must notify the employee of his or her eligibility for PEBB benefits and his or her requirement to complete and return enrollment forms.

     (b) The employee must complete and return the appropriate forms as follows:

     (i) An enrollment form indicating enrollment and health plan choice (if applicable indicating a decision to waive medical) no later than thirty-one days from the date of the employing agency's notice to the employee;

     (ii) To enroll in optional coverage, a life insurance enrollment form no later than sixty days from the date of the employing agency's notice to the employee and a long-term disability insurance enrollment form no later than thirty-one days from the date of the employing agency's notice to the employee.

     (c) Employees who do not return the appropriate forms to their employing agency indicating their medical and dental choice will be enrolled in a health plan according to subsection (1)(a), (b), and (c) of this section.

     (d) Employees who do not return the appropriate forms to their employing agency indicating optional coverage elections, are not eligible to enroll in optional coverage, except as described in subsection (2)(c) of this section.

     (4) Employees who are eligible to participate in the state's salary reduction plan (see WAC 182-12-116) will ((be)) automatically ((enrolled)) enroll in the premium payment plan upon enrollment in medical so employee medical premiums are taken on a pretax basis. To opt out of the premium payment plan, new employees must complete the appropriate form and return it to their ((employing)) state agency no later than thirty-one days after they become eligible for PEBB benefits.

     (((4))) (5) Employees who are eligible to participate in the state's salary reduction plan may enroll in the state's medical flexible spending arrangement (FSA) or dependent care assistance program (DCAP) or both. To enroll in these optional PEBB benefits, employees must return the appropriate enrollment forms to their ((employing)) state agency or PEBB designee no later than thirty-one days after becoming eligible for PEBB benefits.

     (((5))) (6) The employer contribution toward insurance coverage ends according to WAC 182-12-131. Employees who become newly eligible for the employer contribution enroll as described in subsections (1) and (2) of this section, with the following exceptions in which insurance coverage elections stay the same:

     (a) When an employee transfers from one employing agency to another employing agency without a break in state service. This includes movement of employees between any entities described in WAC 182-12-111 and participating in PEBB benefits.

     (b) When employees have a break in state service that does not interrupt their employer contribution toward PEBB insurance coverage.

     (c) When employees continue insurance coverage by self-paying the full premium under WAC 182-12-133(1) or 182-12-142 and become newly eligible for the employer contribution before the end of the maximum number of months allowed for continuing PEBB health plan enrollment under those rules. Employees who are eligible to continue optional life or optional long-term disability under continuation coverage but discontinue that insurance coverage are subject to the insurance underwriting requirements if they apply for the insurance when they return to work or become eligible again for the employer contribution.

     (((6))) (7) When an employee's employment ends, participation in the state's salary reduction plan ends. If the employee is hired into a new position that is eligible for PEBB benefits in the same year, the employee may not resume participation in DCAP or medical FSA until the beginning of the next plan year, unless the time between employments is less than thirty days and the employee notifies the new state agency and the DCAP or FSA administrator of his or her employment transfer within the current plan year.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-08-197, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-08-197, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-08-197, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-08-197, filed 10/3/07, effective 11/3/07; 06-11-156 (Order 06-02), § 182-08-197, filed 5/24/06, effective 6/24/06. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-08-197, filed 7/27/05, effective 8/27/05.]

     (1) During annual open enrollment: Subscribers may change health plans during the annual open enrollment. The subscriber must submit the appropriate enrollment forms to change health plan no later than the end of the annual open enrollment. Enrollment in the new health plan will begin January 1st of the following year.

     (2) During a special open enrollment: Subscribers may change health plans outside of the annual open enrollment if a special open enrollment event occurs. The change in enrollment must be allowable under Internal Revenue Code (IRC) and correspond to the event that creates the special open enrollment for either the subscriber or the subscriber's dependents or both. To make a health plan change, the subscriber must submit the appropriate enrollment forms (and a completed disenrollment form, if required) no later than sixty days after the event occurs. Employees submit the enrollment forms to their employing agency. All other subscribers((, including retirees, COBRA, and other self-pay subscribers,)) submit the enrollment forms to the PEBB program. Insurance coverage in the new health plan will begin the first day of the month following the ((event that created the special open enrollment; or in cases where the event occurs on the first day of the month, insurance coverage will begin on that date)) later of the event date or the date the form is received. If the special open enrollment is due to the birth, adoption, or assumption of legal obligation for total or partial support in anticipation of adoption of a child, insurance coverage will begin the month in which the ((event)) birth, adoption, or assumption of legal obligation for total or partial support in anticipation of adoption occurs. Any one of the following events may create a special open enrollment:

     (a) ((Subscriber's)) Subscriber acquires a new dependent ((becomes eligible under PEBB rules)) due to:

     (i) ((Through)) Marriage or registering a domestic partnership with Washington's secretary of state;

     (ii) ((Through)) Birth, adoption or when the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption;

     (iii) A child becoming eligible as an extended dependent through legal custody or legal guardianship; or

     (iv) ((When)) A child ((becomes)) becoming eligible as ((an extended)) a dependent with a disability;

     (b) ((Subscriber's dependent no longer meets PEBB eligibility criteria because:

     (i) Subscriber has a change in marital status or Washington state registered domestic partnership status, including legal separation documented by a court order;

     (ii) A child dependent turns age twenty-six;

     (iii) A child dependent ceases to be eligible as an extended dependent or as a dependent with disabilities; or

     (iv) A dependent dies;

     (c))) Subscriber or a subscriber's dependent loses other coverage under a group health plan or through health insurance coverage, as defined by the Health Insurance Portability and Accountability Act (HIPAA);

     (((d))) (c) Subscriber or a subscriber's dependent has a change in employment status that affects the subscriber's or ((a)) the subscriber's dependent's eligibility for the employer contribution toward group health coverage ((or the employer contribution toward insurance coverage));

     (((e))) (d) Subscriber or a subscriber's dependent has a change in residence that affects health plan availability. If the subscriber moves and the subscriber's current health plan is not available in the new location ((but)) the subscriber ((does not)) must select a new health plan. If the subscriber does not select a new health plan, the PEBB program may ((enroll)) change the ((subscriber in the Uniform Medical Plan or Uniform Dental Plan)) subscriber's health plan as described in WAC 182-08-196;

     (((f))) (e) Subscriber receives a court order or medical support order requiring the subscriber, the subscriber's spouse, or the subscriber's Washington state registered domestic partner to provide insurance coverage for an eligible dependent (a former spouse or former registered domestic partner is not an eligible dependent);

     (((g))) (f) Subscriber or a subscriber's dependent becomes eligible for ((a medical)) state premium assistance ((program under the department of social and health services, including)) through medicaid or ((the)) a state children's health insurance program (CHIP), or the subscriber or a subscriber's dependent loses eligibility ((a medical assistance program)) for coverage under medicaid or CHIP;

     (((h) Seasonal employees whose off-season occurs during the annual open enrollment. They may select a new health plan upon their return to work;

     (i))) (g) Subscriber or ((an eligible)) a subscriber's dependent becomes entitled to medicare, enrolls in or disenrolls from a medicare Part D plan. If the subscriber's current health plan becomes unavailable due to the subscriber's or a subscriber's dependent's entitlement to medicare, the subscriber must select a new health plan as described in WAC 182-08-196;

     (h) Subscriber or a subscriber's dependent's current health plan becomes unavailable because the subscriber or enrolled dependent is no longer eligible for a health savings account (HSA). HCA may require evidence that the subscriber or subscriber's dependent is no longer eligible for an HSA;

     (((j))) (i) Subscriber experiences a disruption that could function as a reduction in benefits for the subscriber or the subscriber's dependent(s) due to a specific condition or ongoing course of treatment. A subscriber may not change their health plan if the subscriber's or an enrolled dependent's physician stops participation with the subscriber's health plan unless the PEBB program determines that a continuity of care issue exists. The PEBB program criteria used will include, but is not limited to, the following in determining if a continuity of care issue exists:

     (i) Active cancer treatment; or

     (ii) Recent transplant (within the last twelve months); or

     (iii) Scheduled surgery within the next sixty days; or

     (iv) Major surgery within the previous sixty days; or

     (v) Third trimester of pregnancy; or

     (vi) Language barrier.

     If the employee is having premiums taken from payroll on a pretax basis, a plan change will not be approved if it would conflict with provisions of the salary reduction plan authorized under RCW 41.05.300.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-08-198, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-08-198, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-08-198, filed 10/1/08, effective 1/1/09; 08-09-027 (Order 08-01), § 182-08-198, filed 4/8/08, effective 4/9/08; 07-20-129 (Order 07-01), § 182-08-198, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.068. 06-23-165 (Order 06-09), § 182-08-198, filed 11/22/06, effective 12/23/06. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-08-198, filed 7/27/05, effective 8/27/05.]

     (1) When they are newly eligible under WAC 182-12-114, as described in WAC 182-08-197.

     (2) During annual open enrollment: An eligible employee (as described in WAC 182-12-116) may enroll in or change their election under the state's premium payment plan, medical FSA or DCAP during the annual open enrollment. Employees must submit, in paper or on-line, the appropriate enrollment form to enroll or reenroll no later than the last day of the annual open enrollment. The enrollment or new election will be effective January 1st of the following year.

     (3) During a special open enrollment: Employees may enroll or change their election under the state's premium payment plan, medical FSA or DCAP outside of the annual open enrollment if a special open enrollment event occurs. The enrollment or change in enrollment must be allowable under Internal Revenue Code (IRC) and correspond to and be consistent with the event that creates the special open enrollment. To make a change or enroll, the employee must submit the appropriate forms as instructed on the forms no later than sixty days after the event occurs. ((Enrollment will be effective the first day of the month following approval by the administrator.))

     For purposes of this section, an eligible dependent includes any person who qualifies as a dependent of the employee for tax purposes under IRC Section 152 without regard to the income limitations of that section. It does not include a Washington state registered domestic partner unless the domestic partner otherwise qualifies as a dependent for tax purposes under IRC Section 152.

     ((The following events create a special open enrollment for purposes of an eligible employee making a change:

     (a) Employee's)) (a) An employee may enroll or change his or her election under the premium payment plan when any of the following special open enrollment events occur, if the requested change corresponds to and is consistent with the event. Enrollment will be effective the first day of the month following the later of the event date or the date the form is received.

     (i) Employee acquires a new dependent ((becomes eligible under PEBB rules)) due to:

     (((i) Through)) • Marriage;

     (((ii) Through)) • Birth, adoption, or when the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption;

     (((iii))) • A child becoming eligible as an extended dependent through legal custody or legal guardianship; or

     (((iv) When)) • A child ((becomes)) becoming eligible as ((an extended eligible)) a dependent with a disability;

     (((b) Employee's dependent no longer meets PEBB eligibility criteria because:

     (i) Employee has a change in marital status, including legal separation documented by a court order;

     (ii) An eligible dependent child turns age twenty-six;

     (iii) An eligible dependent ceases to be eligible as an extended dependent or as a dependent with disabilities; or

     (iv) An eligible dependent dies;

     (c))) (ii) Employee or an ((eligible)) employee's dependent loses other coverage under a group health plan or through health insurance coverage, as defined by the Health Insurance Portability and Accountability Act (HIPAA);

     (((d))) (iii) Employee or an ((eligible)) employee's dependent has a change in employment status that affects the employee's or a dependent's eligibility for the employer contribution toward group health coverage ((or the employer contribution toward insurance coverage));

     (((e))) (iv) Employee receives a court order or medical support order requiring the employee or the employee's spouse to provide insurance coverage for an eligible dependent;

     (((f))) (v) Employee or ((an eligible)) employee's dependent becomes eligible for ((a medical)) state premium assistance ((program under the department of social and health services, including)) through medicaid or ((the)) a state children's health insurance program (CHIP), or the ((subscriber)) employee or employee's dependent loses eligibility ((in such a medical assistance program)) for coverage under medicaid or CHIP;

     (((g) Seasonal employees whose off-season occurs during the annual open enrollment may enroll in the plan upon their return to work;

     (h))) (vi) Employee or ((an eligible)) employee's dependent gains or loses eligibility for medicare;

     (((i) In addition to (a) through (h) of this section, the following are events that create a special open enrollment for purposes of an eligible employee making a change in his or her DCAP:

     (i) Employees who change dependent care providers may make a change in their DCAP to reflect the cost of the new provider;

     (ii) The employee or the employee's spouse experiences a change in the number of qualifying individuals as defined in IRC Section 21 (b)(1); or

     (iii) If an employee's dependent care provider imposes a change in the cost of dependent care, the employee may make a change in the DCAP to reflect the new cost if the dependent care provider is not a relative as defined in Section 152 (a)(1) through (8), incorporating the rules of Section 152 (b)(1) and (2) of the IRC.)) (vii) Employee or employee's dependent's current health plan becomes unavailable because the employee or enrolled dependent is no longer eligible for a health savings account (HSA). HCA may require evidence that the employee or employee's dependent is no longer eligible for an HSA;

     (viii) Employee experiences a disruption that could function as a reduction in benefits for the employee or the employee's dependent(s) due to a specific condition or ongoing course of treatment. An employee may not change their health plan if the employee's or an enrolled dependent's physician stops participation with the employee's health plan unless the PEBB program determines that a continuity of care issue exists. The PEBB program criteria used will include, but is not limited to, the following in determining if a continuity of care issue exists:

     (A) Active cancer treatment; or

     (B) Recent transplant (within the last twelve months); or

     (C) Scheduled surgery within the next sixty days; or

     (D) Major surgery within the previous sixty days; or

     (E) Third trimester of pregnancy; or

     (F) Language barrier.

     If the employee is having premiums taken from payroll on a pretax basis, a plan change will not be approved if it would conflict with provisions of the salary reduction plan authorized under RCW 41.05.300.

     (b) An employee may enroll or change his or her election under the medical FSA when any one of the following special open enrollment events occur, if the requested change corresponds to and is consistent with the event. Enrollment will be effective the first day of the month following approval by the FSA administrator.

     (i) Employee acquires a new dependent due to:

     • Marriage;

     • Birth, adoption, or when the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption;

     • A child becoming eligible as an extended dependent through legal custody or legal guardianship; or

     • A child becoming eligible as a dependent with a disability;

     (ii) Employee or an employee's dependent has a change in employment status that affects the employee's or a dependent's eligibility for the FSA;

     (iii) Employee receives a court order or medical support order requiring the employee or the employee's spouse to provide insurance coverage for an eligible dependent;

     (iv) Employee or an employee's dependent loses eligibility for coverage under medicaid or a state children's health insurance program (CHIP);

     (v) Employee or an employee's dependent gains or loses eligibility for medicare;

     (c) An employee may enroll or change his or her election under the DCAP when any one of the following special open enrollment events occur, if the requested change corresponds to and is consistent with the event. Enrollment will be effective the first day of the month following approval by the DCAP administrator.

     (i) Employee acquires a new dependent due to:

     • Marriage;

     • Birth, adoption, or when the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption;

     • A child becoming eligible as an extended dependent through legal custody or legal guardianship; or

     • A child becoming eligible as a dependent with a disability;

     (ii) Employee or an employee's dependent has a change in employment status that affects the employee's or a dependent's eligibility for DCAP;

     (iii) Employee changes dependent care provider; the change to DCAP can reflect the cost of the new provider;

     (iv) Employee or the employee's spouse experiences a change in the number of qualifying individuals as defined in IRC Section 21 (b)(1);

     (v) Employee's dependent care provider imposes a change in the cost of dependent care; employee may make a change in the DCAP to reflect the new cost if the dependent care provider is not a relative as defined in Section 152 (a)(1) through (8), incorporating the rules of Section 152 (b)(1) and (2) of the IRC.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-08-199, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-08-199, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-08-199, filed 10/1/08, effective 1/1/09.]

OTS-4244.2

AMENDATORY SECTION(Amending Order 10-02, filed 10/6/10, effective 1/1/11)

WAC 182-12-109   Definitions.   The following definitions apply throughout this chapter unless the context clearly indicates another meaning:

     (("Administrator" means the administrator of the HCA or designee.))

     "Agency" means the health care authority.

     "Benefits eligible position" means any position held by an employee who is eligible for benefits under WAC 182-12-114, with the exception of employees who establish eligibility under WAC 182-12-114 (2) or (3)(a)(ii).

     "Board" means the public employees benefits board established under provisions of RCW 41.05.055.

     "Comprehensive employer sponsored medical" includes insurance coverage continued by the employee or their dependent under COBRA. It does not include an employer's retiree coverage, with the exception of a federal retiree plan.

     "Creditable coverage" means coverage that meets the definition of "creditable coverage" under RCW 48.66.020 (13)(a) and includes payment of medical and hospital benefits.

     "Defer" means to postpone enrollment or interrupt enrollment in a PEBB medical insurance by a retiree or eligible survivor.

     "Dependent" means a person who meets eligibility requirements in WAC 182-12-260.

     "Dependent care assistance program" or "DCAP" means a benefit plan whereby state and public employees may pay for certain employment related dependent care with pretax dollars as provided in the salary reduction plan authorized in chapter 41.05 RCW.

     "Director" means the director of the HCA or designee.

     "Effective date of enrollment" means the first date when an enrollee is entitled to receive covered benefits.

     "Employer group" means those employee organizations representing state civil service employees, counties, municipalities, political subdivisions, tribal governments, school districts, and educational service districts participating in PEBB insurance coverage under contract as described in WAC 182-08-230.

     "Employing agency" means a division, department, or separate agency of state government, including an institution of higher education; a county, municipality, school district, educational service district, or other political subdivision; or a tribal government covered by chapter 41.05 RCW.

     "Enrollee" means a person who meets all eligibility requirements defined in chapter 182-12 WAC, who is enrolled in PEBB benefits, and for whom applicable premium payments have been made.

     "Faculty" means an academic employee of an institution of higher education whose workload is not defined by work hours but whose appointment, workload, and duties directly serve the institution's academic mission, as determined under the authority of its enabling statutes, its governing body, and any applicable collective bargaining agreement.

     "Health plan" or "plan" means a medical or dental plan developed by the public employees benefits board and provided by a contracted vendor or self-insured plans administered by the HCA.

     "Institutions of higher education" means the state public research universities, the public regional universities, The Evergreen State College, the community and technical colleges, and includes the higher education personnel board and the state board for community and technical colleges.

     "Insurance coverage" means any health plan, life insurance, long-term care insurance, long-term disability insurance, or property and casualty insurance administered as a PEBB benefit.

     "Layoff," for purposes of this chapter, means a change in employment status due to an employer's lack of funds or an employer's organizational change.

     "LTD insurance" includes basic long-term disability insurance paid for by the employing agency and long-term disability insurance offered to employees on an optional basis.

     "Life insurance" includes basic life insurance paid for by the employing agency, life insurance offered to employees on an optional basis, and retiree life insurance.

     "Medical flexible spending arrangement" or "medical FSA" means a benefit plan whereby state and public employees may reduce their salary before taxes to pay for medical expenses not reimbursed by insurance as provided in the salary reduction plan authorized in chapter 41.05 RCW.

     "Open enrollment" means a time period when: Subscribers may apply to transfer their enrollment from one health plan to another; a dependent may be enrolled; a dependent may be removed from coverage; or an employee who previously waived medical may enroll in medical. Open enrollment is also the time when employees may enroll in or change their election under the DCAP, the medical FSA, or the premium payment plan. An "annual" open enrollment, designated by the ((administrator)) director, is an open enrollment when all PEBB subscribers may make enrollment changes for the upcoming year. A "special" open enrollment is triggered by a specific life event. For special open enrollment events as they relate to specific PEBB benefits, see WAC 182-08-198, 182-08-199, 182-12-128, 182-12-262.

     "PEBB" means the public employees benefits board.

     "PEBB appeals committee" means the committee that considers appeals relating to the administration of PEBB benefits by the PEBB program. The ((administrator)) director has delegated the authority to hear appeals at the level below an administrative hearing to the PEBB appeals committee.

     "PEBB benefits" means one or more insurance coverage or other employee benefit administered by the PEBB program within HCA.

     "PEBB program" means the program within the HCA which administers insurance and other benefits for eligible employees of the state (as defined in WAC 182-12-114), eligible retired and disabled employees (as defined in WAC 182-12-171), eligible dependents (as defined in WAC 182-12-250 and 182-12-260) and others as defined in RCW 41.05.011.

     "Premium payment plan" means a benefit plan whereby state and public employees may pay their share of group health plan premiums with pretax dollars as provided in the salary reduction plan.

     "Salary reduction plan" means a benefit plan whereby state and public employees may agree to a reduction of salary on a pretax basis to participate in the DCAP, medical FSA, or premium payment plan as authorized in chapter 41.05 RCW.

     "Seasonal employee" means an employee hired to work during a recurring, annual season with a duration of three months or more, and anticipated to return each season to perform similar work.

     "State agency" means an office, department, board, commission, institution, or other separate unit or division, however designated, of the state government and all personnel thereof. It includes the legislature, executive branch, and agencies or courts within the judicial branch, as well as institutions of higher education and any unit of state government established by law.

     "Subscriber" means the employee, retiree, COBRA beneficiary or eligible survivor who has been designated by the HCA as the individual to whom the HCA and contracted vendors will issue all notices, information, requests and premium bills on behalf of enrollees.

     "Termination of the employment relationship" means that an employee resigns or an employee is terminated and the employing agency has no anticipation that the employee will be rehired.

     "Tribal government" means an Indian tribal government as defined in Section 3(32) of the Employee Retirement Income Security Act of 1974 (ERISA), as amended, or an agency or instrumentality of the tribal government, that has government offices principally located in this state.

     "Waive" means to interrupt an eligible employee's enrollment in a PEBB health plan because the employee is enrolled in other comprehensive group coverage or is on approved educational leave (see WAC 182-12-128 and 182-12-136).

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-109, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-109, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-109, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-109, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.068. 06-23-165 (Order 06-09), § 182-12-109, filed 11/22/06, effective 12/23/06. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-109, filed 8/26/04, effective 1/1/05.]

     (1) Employees may waive enrollment in PEBB medical by submitting the appropriate enrollment form to their employing agency during the following times:

     (a) When the employee becomes eligible: Employees may waive medical when they become eligible for PEBB benefits. Employees must indicate they are waiving medical on the appropriate enrollment form they submit to their employing agency no later than thirty-one days after the date they become eligible (see WAC 182-08-197). Medical will be waived as of the date the employee becomes eligible for PEBB benefits.

     (b) During the annual open enrollment: Employees may waive medical during the annual open enrollment if they submit the appropriate enrollment form to their employing agency before the end of the annual open enrollment. Medical will be waived beginning January 1st of the following year.

     (c) During a special open enrollment: Employees may waive medical during a special open enrollment as described in subsection (4) of this section.

     (2) If an employee waives medical, the employee's eligible dependents may not be enrolled in medical.

     (3) Once medical is waived, enrollment is only allowed during the following times:

     (a) During the annual open enrollment;

     (b) During a special open enrollment created by an event that allows for enrollment outside of the annual open enrollment as described in subsection (4) of this section. In addition to the appropriate forms, the PEBB program may require the employee to provide evidence of eligibility and evidence of the event that creates a special open enrollment.

     (4) Special open enrollment: Employees may waive enrollment in medical or enroll in medical if ((one of these)) a special open enrollment events occurs. The change in enrollment must correspond to the event that creates the special open enrollment. Any one of the following events may create a special open enrollment:

     (a) ((Employee's)) Employee acquires a new dependent ((becomes eligible under PEBB rules)) due to:

     (i) ((Through)) Marriage or registering a domestic partnership with Washington state;

     (ii) ((Through)) Birth, adoption or when the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption;

     (iii) A child becoming eligible as an extended dependent through legal custody or legal guardianship; or

     (iv) ((When)) A child ((becomes)) becoming eligible as ((an extended)) a dependent with a disability;

     (b) ((Employee's dependent no longer meets PEBB eligibility criteria because:

     (i) Employee has a change in marital status or Washington state registered domestic partnership status, including legal separation documented by a court order;

     (ii) A child dependent turns age twenty-six;

     (iii) A child dependent ceases to be eligible as an extended dependent or as a dependent with disabilities; or

     (iv) A dependent dies;

     (c))) Employee or a dependent loses other coverage under a group health plan or through health insurance coverage, as defined by the Health Insurance Portability and Accountability Act (HIPAA);

     (((d))) (c) Employee or ((a)) an employee's dependent has a change in employment status that affects the employee's or ((a)) employee's dependent's eligibility for the employer contribution toward group health coverage ((or the employer contribution toward insurance coverage;

     (e) Employee or a dependent has a change in residence that affects health plan availability));

     (((f))) (d) Employee receives a court order or medical support order requiring the employee, spouse, or Washington state registered domestic partner to provide insurance coverage for an eligible dependent (a former spouse or former registered domestic partner is not an eligible dependent);

     (((g))) (e) Employee or dependent becomes eligible for ((a medical)) state premium assistance ((program under the department of social and health services, including)) through medicaid or ((the)) a state children's health insurance program (CHIP), or the employee or dependent loses eligibility ((in a medical assistance program)) for coverage under medicaid or CHIP.

     To waive or enroll during a special open enrollment, the employee must submit the appropriate forms to their employing agency no later than sixty days after the event that creates the special open enrollment.

     Medical will be waived the end of the month following the later of the event date or the date the form is received. If the special open enrollment is due to the birth, adoption or assumption of legal obligation for total or partial support in anticipation of adoption of a child, medical will be waived the first of the month in which the event occurs.

     Enrollment in ((insurance coverage)) medical will begin the first day of the month following the later of the event ((that created the special open enrollment; or in cases where the event occurs on the first day of a month, enrollment will begin on that)) date or the date the form is received. If the special open enrollment is due to the birth, adoption or assumption of legal obligation for total or partial support in anticipation of adoption of a child, ((insurance coverage)) enrollment in medical will begin the first of the month in which the event occurs.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-128, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-128, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-128, filed 10/1/08, effective 1/1/09; 08-09-027 (Order 08-01), § 182-12-128, filed 4/8/08, effective 4/9/08; 07-20-129 (Order 07-01), § 182-12-128, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-128, filed 8/26/04, effective 1/1/05.]

     (1) Maintaining the employer contribution. Except as described in subsections (2), (3) and (4) of this section, an employee who has established eligibility for benefits under WAC 182-12-114 is eligible for the employer contribution each month in which he or she is in pay status eight or more hours per month.

     (2) Maintaining the employer contribution - Benefits-eligible seasonal employees.

     (a) A benefits-eligible seasonal employee (eligible under WAC 182-12-114(2)) who works a season of less than nine months is eligible for the employer contribution in any month of his or her season in which he or she is in pay status eight or more hours during that month. The employer contribution toward PEBB benefits for seasonal employees returning after their off season begins on the first day of the first month of the season in which they are in pay status eight hours or more.

     (b) A benefits-eligible seasonal employee (eligible under WAC 182-12-114(2)) who works a season of nine months or more is eligible for the employer contribution:

     (i) In any month of his or her season in which he or she is in pay status eight or more hours during that month; and

     (ii) Through the off season following each season worked.

     (3) Maintaining the employer contribution - Eligible faculty.

     (a) Benefits-eligible faculty anticipated to work the entire instructional year or equivalent nine-month period (eligible under WAC 182-12-114 (3)(a)(i)) are eligible for the employer contribution each month of the instructional year, except as described in subsection (7) of this section.

     (b) Benefits-eligible faculty who are hired on a quarter/semester to quarter/semester basis (eligible under WAC 182-12-114 (3)(a)(ii)) are eligible for the employer contribution each quarter or semester in which the employee works half-time or more.

     (c) Summer or off-quarter/semester coverage: All benefits-eligible faculty (eligible under WAC 182-12-114(3)) who work an average of half-time or more throughout the entire instructional year or equivalent nine-month period and work each quarter/semester of the instructional year or equivalent nine-month period are eligible for the employer contribution toward summer or off-quarter/semester insurance coverage.

Exception:

Eligibility for the employer contribution toward summer or off-quarter/semester insurance coverage ends on the end date specified in an employing agency's termination notice or an employee's resignation letter, whichever is earlier, if the employing agency has no anticipation that the employee will be returning as faculty at any institution of higher education where the employee has employment. If the employing agency deducted the employee's premium for insurance coverage after the employee was no longer eligible for the employer contribution, insurance coverage ends the last day of the month for which employee premiums were deducted.

     (d) Two-year averaging: All benefits-eligible faculty (eligible under WAC 182-12-114(3)) who worked an average of half-time or more in each of the two preceding academic years are potentially eligible to receive uninterrupted employer contribution to PEBB benefits. "Academic year" means summer, fall, winter, and spring quarters or summer, fall, and spring semesters and begins with summer quarter/semester. In order to be eligible for the employer contribution through two-year averaging, the faculty must provide written notification of his or her potential eligibility to his or her employing agency or agencies within the deadlines established by the employing agency or agencies. Faculty continue to receive uninterrupted employer contribution for each academic year in which they:

     (i) Are employed on a quarter/semester to quarter/semester basis and work at least two quarters or two semesters; and

     (ii) Have an average workload of half-time or more for three quarters or two semesters.

     Eligibility for the employer contribution under two-year averaging ceases immediately if the eligibility criteria is not met or if the eligibility criteria becomes impossible to meet.

     (e) Faculty ((with gaps of)) who lose eligibility for the employer contribution: All benefits-eligible faculty (eligible under WAC 182-12-114(3)) who lose eligibility for the employer contribution will regain it if they return to a faculty position where it is anticipated that they will work half-time or more for the quarter/semester no later than the twelfth month after the month in which they lost eligibility for the employer contribution. The employer contribution begins on the first day of the month in which the quarter/semester begins.

     (4) Maintaining the employer contribution - Employees on leave and under the special circumstances listed below.

     (a) Employees who are on approved leave under the federal Family and Medical Leave Act (FMLA) continue to receive the employer contribution as long as they are approved under the act.

     (b) Unless otherwise indicated in this section, employees in the following circumstances receive the employer contribution only for the months they are in pay status eight hours or more:

     (i) Employees on authorized leave without pay;

     (ii) Employees on approved educational leave;

     (iii) Employees receiving time-loss benefits under workers' compensation;

     (iv) Employees called to active duty in the uniformed services as defined under the Uniformed Services Employment and Reemployment Rights Act (USERRA); or

     (v) Employees applying for disability retirement.

     (5) Maintaining the employer contribution - Employees who move from an eligible to an otherwise ineligible position due to a layoff maintain the employer contribution toward insurance coverage under the criteria in WAC 182-12-129.

     (6) Employees who are in pay status less than eight hours in a month. Unless otherwise indicated in this ((rule)) section, when there is a month in which an employee is not in pay status for at least eight hours, the employee:

     (a) Loses eligibility for the employer contribution for that month; and

     (b) Must reestablish eligibility for PEBB benefits under WAC 182-12-114 in order to be eligible for the employer contribution again.

     (7) The employer contribution to PEBB insurance coverage ends in any one of these circumstances for all employees:

     (a) When the employee fails to maintain eligibility for the employer contribution as indicated in the criteria in subsection (1) through (6) of this section.

     (b) 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:

     (i) On the date specified in an employee's letter of resignation; or

     (ii) On the date specified in any contract or hire letter or on the effective date of an employer-initiated termination notice.

     (c) When the employee moves to a position that is not anticipated to be eligible for benefits under WAC 182-12-114, not including changes in position due to a layoff.

     The employer contribution toward PEBB medical, dental and life insurance for an employee, spouse, Washington state registered domestic partner, or child ceases at 12:00 midnight, the last day of the month in which the employee is eligible for the employer contribution under this ((rule)) section.

Exception:

If the employing agency deducted the employee's premium for insurance coverage after the employee was no longer eligible for the employer contribution, insurance coverage ends the last day of the month for which employee premiums were deducted.

     (8) Options for continuation coverage by self-paying. During temporary or permanent loss of the employer contribution toward insurance coverage, employees have options for providing continuation coverage for themselves and their dependents by self-paying the full premium set by the HCA. These options are available according to WAC 182-12-133, 182-12-141, 182-12-142, 182-12-146, 182-12-148, and 182-12-270.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-131, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-131, filed 11/17/09, effective 1/1/10; 07-20-129 (Order 07-01), § 182-12-131, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-131, filed 8/26/04, effective 1/1/05.]

     (2) If an employee exhausts the period of leave approved under FMLA, insurance coverage may be continued by self-paying the full premium set by the HCA, with no contribution from the employer, under WAC 182-12-133(1) while on approved leave.

[Statutory Authority: RCW 41.05.160. 09-23-102 (Order 09-02), § 182-12-138, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-138, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-138, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-138, filed 8/26/04, effective 1/1/05.]

     (2) If an employee is reverted due to a layoff, the employee may be eligible for the employer contribution toward insurance coverage under the criteria of WAC 182-12-129. If determined not to be eligible under WAC 182-12-129, the employee may continue PEBB insurance coverage by self-paying the full premium set by the HCA under WAC 182-12-133.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-141, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-141, filed 11/17/09, effective 1/1/10; 07-20-129 (Order 07-01), § 182-12-141, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-141, filed 8/26/04, effective 1/1/05.]

     (a) The employee must submit the appropriate forms to enroll or defer insurance coverage within sixty days after the employee's employer paid or COBRA coverage ends. The effective date of health plan enrollment will be the first day of the month following the loss of other coverage.

Exception:

The effective dates of health plan enrollment for retirees who defer enrollment in a PEBB health plan at or after retirement are identified in WAC 182-12-200 and 182-12-205.

     Employees who do not enroll in a PEBB health plan at retirement are only eligible to enroll at a later date if they have deferred enrollment as identified in WAC 182-12-200 or 182-12-205 and maintained comprehensive employer sponsored medical as defined in WAC 182-12-109.

     (b) The employee and enrolled dependents who are entitled to medicare must enroll and maintain enrollment in both medicare parts A and B if the employee retired after July 1, 1991. If the employee or an enrolled dependent becomes entitled to medicare after enrollment in PEBB retiree insurance, he or she must enroll and maintain enrollment in medicare.

     (2) Eligibility requirements. Eligible employees (as defined in WAC 182-12-114 and 182-12-131) who end public employment after becoming vested in a Washington state-sponsored retirement plan (as defined in subsection (4) of this section) are eligible to continue PEBB insurance coverage as a retiree if they meet procedural and eligibility requirements. To be eligible to continue PEBB insurance coverage as a retiree, the employee must be eligible to retire under a Washington state-sponsored retirement plan when the employee's employer paid or COBRA coverage ends.

     Employees who do not meet their Washington state-sponsored retirement plan's age requirements when their employer paid or COBRA coverage ends, but who meet the age requirement within sixty days of coverage ending, may request that their eligibility be reviewed by the PEBB appeals committee to determine eligibility (see WAC 182-16-032). Employees must meet ((other)) retiree insurance election procedural requirements.

     • Employees must immediately begin to receive a monthly retirement plan payment, with exceptions described below.

     • Employees who receive a lump-sum payment instead of a monthly retirement plan payment are only eligible if this is required by department of retirement systems because their monthly retirement plan payment is below the minimum payment that can be paid.

     • Employees who are members of a Plan 3 retirement, also called separated employees (defined in RCW 41.05.011(((13))) (15)), are eligible if they meet their Plan 3 retirement plan's ((age requirement and length of service)) eligibility criteria when PEBB employee insurance coverage ends. They do not have to receive a retirement plan payment.

     • Employees who are members of a Washington higher education retirement plan are eligible if they immediately begin to receive a monthly retirement plan payment, or meet their plan's ((age requirement)) retirement eligibility criteria, or are at least age fifty-five with ten years of state service.

     • Employees who are permanently and totally disabled are eligible if they start receiving or defer a monthly disability retirement plan payment.

     • Employees not retiring under a Washington state-sponsored retirement plan must meet the same age and years of service ((had)) as if the person had been employed as a member of either public employees retirement system Plan 1 or Plan 2 for the same period of employment.

     • Employees who retire from a local government or tribal government that participates in PEBB insurance coverage for their employees are eligible to continue PEBB insurance coverage as retirees if the employees meet the procedural and eligibility requirements under this section.

     (a) Local government employees. If the local government ends participation in PEBB insurance coverage, employees who enrolled after September 15, 1991, are no longer eligible for PEBB retiree insurance. These employees may continue PEBB health plan enrollment under COBRA (see WAC 182-12-146).

     (b) Tribal government employees. If a tribal government ends participation in PEBB insurance coverage, its employees are no longer eligible for PEBB retiree insurance. These employees may continue PEBB health plan enrollment under COBRA (see WAC 182-12-146).

     (c) Washington state K-12 school district and educational service district employees for districts that do not participate in PEBB benefits. Employees of Washington state K-12 school districts and educational service districts who separate from employment after becoming vested in a Washington state-sponsored retirement system are eligible to enroll in PEBB health plans when retired or permanently and totally disabled.

     Except for employees who are members of a retirement Plan 3, employees who separate on or after October 1, 1993, must immediately begin to receive a monthly retirement plan payment from a Washington state-sponsored retirement system. Employees who receive a lump-sum payment instead of a monthly retirement plan payment are only eligible if department of retirement systems requires this because their monthly retirement plan payment is below the minimum payment that can be paid or they enrolled before 1995.

     Employees who are members of a Plan 3 retirement, also called separated employees (defined in RCW 41.05.011(((13))) (15)), are eligible if they meet their Plan 3 retirement plan's ((age requirement and length of service)) eligibility criteria when employer paid or COBRA coverage ends.

     Employees who separate from employment due to total and permanent disability ((who)), and are eligible for a deferred retirement allowance under a Washington state-sponsored retirement system (as defined in chapter 41.32, 41.35 or 41.40 RCW) are eligible if they enrolled before 1995 or within sixty days following retirement.

     Employees who retired as of September 30, 1993, and began receiving a retirement allowance from a state-sponsored retirement system (as defined in chapter 41.32, 41.35 or 41.40 RCW) are eligible if they enrolled in a PEBB health plan not later than the HCA's annual open enrollment period for the year beginning January 1, 1995.

     (3) Elected and full-time appointed officials of the legislative and executive branches. Employees who are elected and full-time appointed state officials (as defined under WAC 182-12-114(4)) who voluntarily or involuntarily leave public office are eligible to continue PEBB insurance coverage as a retiree if they meet procedural and eligibility requirements. They do not have to receive a retirement plan payment from a state-sponsored retirement system.

     (4) Washington state-sponsored retirement systems include:

     • Higher education retirement plans;

     • Law enforcement officers' and firefighters' retirement system;

     • Public employees' retirement system;

     • Public safety employees' retirement system;

     • School employees' retirement system;

     • State judges/judicial retirement system;

     • ((Teacher's)) Teachers' retirement system; and

     • State patrol retirement system.

     The two federal retirement systems, Civil Service Retirement System and Federal Employees' Retirement System, are considered a Washington state-sponsored retirement system for Washington State University Extension employees covered under the PEBB insurance coverage at the time of retirement or disability.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-171, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-171, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-171, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-171, filed 10/3/07, effective 11/3/07; 06-11-156 (Order 06-02), § 182-12-171, filed 5/24/06, effective 6/24/06. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-12-171, filed 7/27/05, effective 8/27/05. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-171, filed 8/26/04, effective 1/1/05.]

     (1) Retirees may defer enrollment in a PEBB health plan at or after retirement if continuously enrolled in other comprehensive employer sponsored medical as identified below:

     (a) Beginning January 1, 2001, retirees may defer enrollment if they are enrolled in comprehensive employer-sponsored medical as an employee or the dependent of an employee.

     (b) Beginning January 1, 2001, retirees may defer enrollment if they are enrolled in medical as a retiree or the dependent of a retiree enrolled in a federal retiree plan.

     (c) Beginning January 1, 2006, retirees may defer enrollment if they are enrolled in medicare Parts A and B and a medicaid program that provides creditable coverage as defined in this chapter. The retiree's dependents may continue their PEBB health plan enrollment if they meet PEBB eligibility criteria and are not eligible for creditable coverage under a medicaid program.

     (2) To defer health plan enrollment, the retiree must submit the appropriate forms to the PEBB program requesting to defer. The PEBB program must receive the form before health plan enrollment is deferred or no later than sixty days after the date the retiree becomes eligible to apply for PEBB retiree insurance coverage.

     (3) Retirees who defer may enroll in a PEBB health plan as follows:

     (a) Retirees who defer while enrolled in comprehensive employer-sponsored medical may enroll in a PEBB health plan by submitting the appropriate forms and evidence of continuous enrollment in comprehensive employer-sponsored medical to the PEBB program:

     (i) During annual open enrollment. (PEBB health plan will begin January 1st after the annual open enrollment.); or

     (ii) No later than sixty days after their comprehensive employer-sponsored medical ends. (PEBB health plan will begin the first day of the month after the comprehensive employer-sponsored medical ends.)

     (b) Retirees who defer enrollment while enrolled as a retiree or dependent of a retiree in a federal retiree medical plan will have a one-time opportunity to enroll in a PEBB health plan by submitting the appropriate forms and evidence of continuous enrollment in a federal retiree medical plan to the PEBB program:

     (i) During annual open enrollment. (PEBB health plan will begin January 1st after the annual open enrollment.); or

     (ii) No later than sixty days after the federal retiree medical ends. (Enrollment in the PEBB health plan will begin the first day of the month after the federal retiree medical ends.)

     (c) Retirees who defer enrollment while enrolled in medicare Parts A and B and medicaid may enroll in a PEBB health plan by submitting the appropriate forms and evidence of continuous enrollment in creditable coverage to the PEBB program:

     (i) During annual open enrollment. (Enrollment in the PEBB health plan will begin January 1st after the annual open enrollment.); or

     (ii) No later than sixty days after their medicaid coverage ends (Enrollment in the PEBB health plan will begin the first day of the month after the medicaid coverage ends.); or

     (iii) No later than the end of the calendar year when their medicaid coverage ends if the retiree was also determined eligible under 42 U.S.C. § 1395w-114 and subsequently enrolled in a medicare Part D plan. (Enrollment in the PEBB health plan will begin January 1st following the end of the calendar year when the medicaid coverage ends.)

     (d) Retirees who defer enrollment may enroll in a PEBB health plan if the retiree receives formal notice that the department of social and health services has determined it is more cost-effective to enroll the retiree or the retiree's eligible dependent(s) in PEBB medical than a medical assistance program.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-205, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-205, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-205, filed 10/1/08, effective 1/1/09; 08-09-027 (Order 08-01), § 182-12-205, filed 4/8/08, effective 4/9/08; 07-20-129 (Order 07-01), § 182-12-205, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.068. 06-23-165 (Order 06-09), § 182-12-205, filed 11/22/06, effective 12/23/06. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-12-205, filed 7/27/05, effective 8/27/05. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-205, filed 8/26/04, effective 1/1/05.]

     (2) A subscriber enrolling in dental must stay enrolled in dental for at least two years before dental can be dropped.

[Statutory Authority: RCW 41.05.160. 09-23-102 (Order 09-02), § 182-12-208, filed 11/17/09, effective 1/1/10; 07-20-129 (Order 07-01), § 182-12-208, filed 10/3/07, effective 11/3/07.]

     (1) Employees whose life insurance premiums are being waived under the terms of the life insurance contract are not eligible for retiree term life insurance until their waiver of premium benefit ends.

     (2) Retirees may not defer enrollment in retiree term life insurance.

     (3) If a retiree returns to active ((employee)) employment status ((in an employing agency)) and becomes eligible for the employer contribution toward PEBB employee life insurance, he or she ((must)) may choose:

     (a) To continue to self-pay premiums and keep retiree life insurance ((premiums)) in ((order to maintain retiree term life insurance (even while participating in PEBB employee life insurance))) place during the period he or she is eligible for employee life insurance; or

     (b) To stop self-paying premiums during the period he or she is eligible for employee life insurance and resume self-paying premiums for retiree life insurance when he or she is no longer eligible for the employer contribution toward PEBB employee life insurance.

[Statutory Authority: RCW 41.05.160. 09-23-102 (Order 09-02), § 182-12-209, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-209, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-209, filed 10/3/07, effective 11/3/07.]

     (2) All premiums due from the date of eligibility established by DRS or the date of the DRS decision letter, at the option of the retiree, must be sent with the application to the PEBB program.

     (3) The ((administrator)) director may make an exception to the date PEBB retiree insurance coverage commences or payment of premiums; however, such requests must demonstrate extraordinary circumstances beyond the control of the retiree.

[Statutory Authority: RCW 41.05.160. 09-23-102 (Order 09-02), § 182-12-211, filed 11/17/09, effective 1/1/10; 07-20-129 (Order 07-01), § 182-12-211, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-211, filed 8/26/04, effective 1/1/05.]

     (1) This section applies to the surviving spouse, the surviving Washington state registered domestic partner, and dependent children of emergency service personnel "killed in the line of duty" as determined by the Washington state department of labor and industries.

     (2) "Emergency service personnel" means law enforcement officers and firefighters as defined in RCW 41.26.030, members of the Washington state patrol retirement fund as defined in RCW 43.43.120, and reserve officers and firefighters as defined in RCW 41.24.010.

     (3) "Surviving spouse, Washington state registered domestic partner, and dependent children" means:

     (a) A lawful spouse;

     (b) An ex-spouse as defined in RCW 41.26.162;

     (c) A Washington state registered domestic partner as defined in RCW 26.60.020; and

     (d) Children. The term "children" includes children of the emergency service worker up to age twenty-six. Children with disabilities as defined in RCW 41.26.030(7) are eligible at any age. "Children" is defined as:

     (i) Biological children (including the emergency service worker's posthumous children);

     (ii) Stepchildren or children of a Washington state registered domestic partner; and

     (iii) Legally adopted children.

     (4) Surviving spouses, Washington state registered domestic partners, and children who are entitled to medicare must enroll in both parts A and B of medicare.

     (5) The survivor (or agent acting on their behalf) must submit the appropriate forms (to either enroll or defer enrollment in a PEBB health plan) to PEBB program no later than one hundred eighty days after the latter of:

     (a) The death of the emergency service worker;

     (b) The date on the letter from the department of retirement systems or the board for volunteer firefighters and reserve officers that informs the survivor that he or she is determined to be an eligible survivor;

     (c) The last day the surviving spouse, Washington state registered domestic partner, or child was covered under any health plan through the emergency service worker's employer; or

     (d) The last day the surviving spouse, Washington state registered domestic partner, or child was covered under the Consolidated Omnibus Budget Reconciliation Act (COBRA) coverage from the emergency service worker's employer.

     (6) Survivors who do not choose to defer enrollment in a PEBB health plan may choose among the following options for when their enrollment in a PEBB health plan will begin:

     (a) June 1, 2006, for survivors whose appropriate forms are received by the PEBB program no later than September 1, 2006;

     (b) The first of the month that is not earlier than sixty days before the date that the PEBB program receives the appropriate forms (for example, if the PEBB program receives the appropriate forms on August 29, the survivor may request health plan enrollment to begin on July 1); or

     (c) The first of the month after the date that the PEBB program receives the appropriate forms.

     For surviving spouses, Washington state registered domestic partners, and children who enroll, monthly health plan premiums must be paid by the survivor except as provided in RCW 41.26.510(5) and 43.43.285 (2)(b).

     (7) Survivors must choose one of the following two options to maintain eligibility for PEBB insurance coverage:

     (a) Enroll in a PEBB health plan:

     (i) Enroll in medical; or

     (ii) Enroll in medical and dental.

     (iii) Survivors enrolling in dental must stay enrolled in dental for at least two years before dental can be dropped.

     (iv) Dental only is not an option.

     (b) Defer enrollment:

     (i) Survivors may defer enrollment in a PEBB health plan if enrolled in comprehensive employer sponsored medical.

     (ii) Survivors may enroll in a PEBB health plan when they lose comprehensive employer sponsored medical. Survivors will need to provide evidence that they were continuously enrolled in comprehensive employer sponsored medical when applying for a PEBB health plan, and apply within sixty days after the date their other coverage ended.

     (iii) PEBB health plan enrollment and premiums will begin the first day of the month following the day that the other coverage ended for eligible spouses and children who enroll.

     (8) Survivors may change their health plan during annual open enrollment. In addition to annual open enrollment, survivors may change health plans as described in WAC 182-08-198.

     (9) ((Survivors may not add new dependents acquired through birth, adoption, establishment of an extended dependent, marriage, or establishment of a qualified domestic partnership.

     (10))) Survivors will lose their right to enroll in a PEBB health plan if they:

     (a) Do not apply to enroll or defer PEBB health plan enrollment within the timelines stated in subsection (5) of this section; or

     (b) Do not maintain continuous enrollment in comprehensive employer sponsored medical through an employer during the deferral period, as provided in subsection (7)(b)(i) of this section.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-250, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-250, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-250, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-250, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.080. 06-20-099 (Order 06-08), § 182-12-250, filed 10/3/06, effective 11/3/06. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-250, filed 8/26/04, effective 1/1/05.]

     The PEBB program verifies the eligibility of all dependents and reserves the right to request documents from subscribers that provide evidence of a dependent's eligibility. The PEBB program will remove a subscriber's enrolled dependents from health plan enrollment if the PEBB program is unable to verify a dependent's eligibility ((within a specified time)). The PEBB program will not enroll or reenroll dependents into a health plan if the PEBB program is unable to verify a dependent's eligibility.

     The subscriber ((or dependent)) must notify the PEBB program, in writing, no later than sixty days after the date ((he or she)) his or her dependent is no longer eligible under this section. See WAC 182-12-262 for the consequences of not removing an ineligible dependent from coverage.

     The following are eligible as dependents under the PEBB eligibility rules:

     (1) Lawful spouse. Former spouses are not eligible dependents upon finalization of a divorce or annulment, even if a court order requires the subscriber to provide health insurance for the former spouse.

     (2) Effective January 1, 2010, Washington state registered domestic partners, as defined in RCW 26.60.020(1). Former Washington state registered domestic partners are not eligible dependents upon dissolution or termination of a partnership, even if a court order requires the subscriber to provide health insurance for the former partner.

     (3) Children. Children are defined as the subscriber's biological children, stepchildren, legally adopted children, children for whom the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption of the child, children of the subscriber's Washington state registered domestic partner, or children specified in a court order or divorce decree. In addition, children include extended dependents in the legal custody or legal guardianship of the subscriber, the subscriber's spouse, or subscriber's Washington state registered domestic partner. The legal responsibility is demonstrated by a valid court order and the child's official residence with the custodian or guardian. "Children" does not include foster children for whom support payments are made to the subscriber through the state department of social and health services foster care program.

     Eligible children include:

     (a) Children up to age twenty-six.

     (b) Effective January 1, 2011, children of any age with disabilities, mental illness, or intellectual or other developmental disabilities who are incapable of self-support, provided such condition occurs before age twenty-six.

     (i) The subscriber must provide evidence of the disability and evidence that the condition occurred before age twenty-six:

     (ii) The subscriber must notify the PEBB program, in writing, no later than sixty days after the date that a child age twenty-six or older no longer qualifies under this subsection.

     For example, children who become self-supporting are not eligible under this ((rule)) subsection as of the last day of the month in which they become capable of self-support.

     (iii) Children age twenty-six and older who become capable of self-support do not regain eligibility under (b) of this subsection if they later become incapable of self-support.

     (iv) The PEBB program will certify the eligibility of children with disabilities periodically.

     (4) Parents.

     (a) Parents covered under PEBB medical before July 1, 1990, may continue enrollment on a self-pay basis as long as:

     (i) The parent maintains continuous enrollment in PEBB medical;

     (ii) The parent qualifies under the Internal Revenue Code as a dependent of the subscriber;

     (iii) The subscriber continues enrollment in PEBB insurance coverage; and

     (iv) The parent is not covered by any other group medical plan.

     (b) Parents eligible under this subsection may be enrolled with a different health plan than that selected by the subscriber. Parents may not add additional dependents to their insurance coverage.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-260, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-260, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-260, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-260, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-12-260, filed 7/27/05, effective 8/27/05. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-260, filed 8/26/04, effective 1/1/05.]

     (a) When the subscriber becomes eligible and enrolls in PEBB insurance coverage. If eligibility is verified and the dependent is enrolled, the dependent's effective date will be the same as the subscriber's effective date. ((Except as provided in WAC 182-12-205 (1)(c), a dependent must be enrolled in the same health plan coverage as the subscriber, and the subscriber must be enrolled to enroll his or her dependent.))

     (b) During the annual open enrollment. PEBB health plan coverage begins January 1st of the following year.

     (c) During special open enrollment. Subscribers may enroll dependents ((when the dependent becomes eligible or)) during ((another)) a special open enrollment as described in subsection((s)) (3) ((and)) of this section. The subscriber must satisfy the enrollment requirements as described in subsection (4) of this section.

     (2) Removing dependents from a subscriber's health plan coverage.

     (a) Subscribers are required to remove a dependent((s)) within sixty days of the date the dependent no longer meets the eligibility criteria in WAC 182-12-250 or 182-12-260. Employees must notify their employing agency. All other subscribers must notify the PEBB program. The PEBB program will remove a subscriber's enrolled dependent the last day of the month in which the dependent ceases to meet the eligibility criteria. Consequences for not submitting notice within sixty days of any dependent ceasing to be eligible may include, but are not limited to:

     (i) The dependent may lose eligibility to continue health plan coverage under one of the continuation coverage options described in WAC 182-12-270;

     (ii) The subscriber may be billed for claims paid by the health plan for services that were rendered after the dependent lost eligibility;

     (iii) The subscriber may not be able to recover subscriber-paid insurance premiums for dependents that lost their eligibility; and

     (iv) The subscriber may be responsible for premiums paid by the state for the dependent's health plan coverage after the dependent lost eligibility.

     (b) Employees have the opportunity to remove dependents:

     (i) During the annual open enrollment. The dependent will be removed the last day of December; or

     (ii) During a special open enrollment as described in subsection((s)) (3) ((and (4))) of this section. ((The dependent will be removed the last day of the month in which the event that creates the special open enrollment occurs.))

     (c) Retirees, survivors, and enrollees with PEBB continuation coverage under WAC 182-12-133, 182-12-141, 182-12-142, 182-12-146, or 182-12-148 may remove dependents from their coverage outside of the annual open enrollment or a special open enrollment by providing written notice to the PEBB program. Unless otherwise approved by the PEBB program, the dependent will be removed from the subscriber's coverage prospectively.

     (3) Special open enrollment. Subscribers may enroll or remove their dependents outside of the annual open enrollment if a special open enrollment event occurs. The change in enrollment must correspond to the event that creates the special open enrollment for either the subscriber or the subscriber's dependents or both.

     • Health plan coverage will begin the first of the month following the ((event that created the special open enrollment; or in cases where the event occurs on the first day of a month, health plan coverage will begin on that date)) later of the event date or the date the form is received.

     • Enrollment of extended dependents or dependents with a disability will be the first day of the month following eligibility certification.

     • Dependents will be removed from the subscriber's health plan coverage the last day of the month following the event.

     • If the special open enrollment is due to the birth or adoption of a child, or when the subscriber has assumed a legal obligation for total or partial support in anticipation of adoption of a child, health plan coverage will begin or end the month in which the event occurs.

     Any one of the following ((changes are)) events ((that)) may create a special open enrollment ((for medical and dental)):

     (a) ((Subscriber's)) Subscriber acquires a new dependent ((becomes eligible under PEBB rules)) due to:

     (i) ((Through)) Marriage or registering a domestic partnership with Washington's secretary of state;

     (ii) ((Through)) Birth, adoption, or when a subscriber has assumed a legal obligation for total or partial support in anticipation of adoption;

     (iii) A child becoming eligible as an extended dependent through legal custody or legal guardianship; or

     (iv) ((When)) A child ((becomes)) becoming eligible as ((an extended)) a dependent with a disability;

     (b) ((Subscriber's dependent no longer meets PEBB eligibility criteria because:

     (i) Subscriber has a change in marital status or Washington state registered domestic partnership status, including legal separation documented by a court order;

     (ii) A child dependent turns age twenty-six;

     (iii) A child dependent ceases to be eligible as an extended dependent or as a dependent with disabilities; or

     (iv) A dependent dies;

     (c))) Subscriber or a subscriber's dependent loses other coverage under a group health plan or through health insurance coverage, as defined by the Health Insurance Portability and Accountability Act (HIPAA);

     (((d))) (c) Subscriber or a subscriber's dependent has a change in employment status that affects the subscriber's or ((a)) the subscriber's dependent's eligibility for the employer contribution toward group health coverage ((or the employer contribution toward insurance coverage));

     (((e) Subscriber or a dependent has a change in residence that affects health plan availability;

     (f))) (d) Subscriber receives a court order or medical support order requiring the subscriber, the subscriber's spouse, or the subscriber's Washington state registered domestic partner to provide insurance coverage for an eligible dependent((.)) (a former spouse or former registered domestic partner is not an eligible dependent((.))); ((or

     (g))) (e) Subscriber or a subscriber's dependent becomes eligible for ((a medical)) state premium assistance ((program under the department of social and health services, including)) through medicaid or ((the)) a state children's health insurance program (CHIP), or the subscriber or dependent loses eligibility ((in a medical assistance program)) for coverage under medicaid or CHIP.

     (4) Enrollment requirements. Subscribers must submit the appropriate forms within the time frames described in this subsection. Employees submit the appropriate forms to their employing agency. All other subscribers submit the appropriate forms to the PEBB program. In addition to the appropriate forms indicating dependent enrollment, the ((PEBB program may require the subscriber to)) subscriber must provide ((documentation or)) the required documents as evidence of the dependent's eligibility; or as evidence of the event that created the special open enrollment.

     (a) If a subscriber wants to enroll their eligible dependent(s) when the subscriber becomes eligible to enroll in PEBB benefits, the subscriber must include the dependent's enrollment information on the appropriate forms that the subscriber submits within the relevant time frame described in WAC 182-08-197, 182-12-171, or 182-12-250.

     (b) If a subscriber wants to enroll eligible dependents during the annual open enrollment, the subscriber must submit the appropriate forms no later than the last day of the annual open enrollment.

     (c) If a subscriber wants to enroll newly eligible dependents, the subscriber must submit the appropriate enrollment forms no later than sixty days after the dependent becomes eligible except as provided in (d) of this subsection.

     (d) If a subscriber wants to enroll a newborn or child whom the subscriber has adopted or has assumed a legal obligation for total or partial support in anticipation of adoption, the subscriber should notify the PEBB program by submitting an enrollment form as soon as possible to ensure timely payment of claims. If adding the child increases the premium, the subscriber must submit the appropriate enrollment form no later than twelve months after the date of the birth, adoption, or the date the legal obligation is assumed for total or partial support in anticipation of adoption.

     (e) If the subscriber wants to enroll a child age twenty-six or older as a child with disabilities, the subscriber must submit the appropriate form(s) no later than sixty days after the last day of the month in which the child reaches age twenty-six or within the relevant time frame described in WAC 182-12-262 (4)(a), (b), and (f).

     (f) If the subscriber wants to change a dependent's enrollment status during a special open enrollment, the subscriber must submit the appropriate forms no later than sixty days after the event that creates the special open enrollment.

     (((g) If the subscriber wants to remove a dependent from enrollment during an open enrollment, the subscriber must submit the appropriate forms. Unless otherwise approved by the PEBB program, enrollment will be removed prospectively.))

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-12-262, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-12-262, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-262, filed 10/1/08, effective 1/1/09; 08-09-027 (Order 08-01), § 182-12-262, filed 4/8/08, effective 4/9/08.]

     (1) Dependents who lose eligibility due to the death of an eligible employee may continue enrollment in a PEBB health plan enrollment as a survivor under retiree insurance coverage provided they immediately begin receiving a monthly retirement benefit from any state of Washington sponsored retirement system.

     (a) The employee's spouse or Washington state registered domestic partner may continue health plan enrollment until death.

     (b) Children may continue health plan enrollment until they lose eligibility under PEBB rules.

     (c) If a surviving spouse, Washington state registered domestic partner, or child of an eligible employee is not eligible for a monthly retirement benefit (or a lump-sum payment because the monthly pension payment would be less than the minimum amount established by the department of retirement systems) the dependent is not eligible for PEBB retiree insurance as a survivor. However, the dependent may continue health plan enrollment under provisions of the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) or WAC 182-12-270.

     (d) The two federal retirement systems, Civil Service Retirement System and Federal Employees Retirement System, shall be considered a Washington sponsored retirement system for Washington State University extension service employees who were covered under PEBB insurance coverage at the time of death.

     (2) Dependents who lose eligibility due to the death of a PEBB eligible retiree may continue health plan enrollment under retiree insurance.

     (a) The retiree's spouse or Washington state registered domestic partner may continue health plan enrollment until death.

     (b) Children may continue health plan enrollment until they lose eligibility under PEBB rules.

     (c) Dependents, who are not enrolled in a PEBB health plan at the time of the retiree's death, are eligible to enroll or defer enrollment in PEBB retiree insurance. A form to enroll or defer PEBB health plan enrollment must be hand-delivered or mailed to the PEBB program no later than sixty days after the retiree's death. To enroll in a PEBB health plan, the dependent must provide satisfactory evidence of continuous enrollment in other medical coverage from the most recent open enrollment for which enrollment in PEBB was deferred.

     (3) Surviving spouses, Washington state registered domestic partners, or eligible children of a deceased school district or educational service district employee who were not enrolled in PEBB insurance coverage at the time of the subscriber's death may enroll in a PEBB health plan provided the employee died on or after October 1, 1993, and the dependent(s) immediately began receiving a retirement benefit allowance under chapter 41.32, 41.35 or 41.40 RCW.

     (a) The employee's spouse or Washington state registered domestic partner may continue health plan enrollment until death.

     (b) Children may continue health plan enrollment until they lose eligibility under PEBB rules.

     (4) Surviving dependents must notify the PEBB program of their decision to enroll or defer enrollment in a PEBB health plan no later than sixty days after the date of death of the employee or retiree.

Note:

If premium payment sufficient to maintain health plan enrollment continues after the employee's or retiree's death, the PEBB program will consider the payment as notice of the survivor's intent to continue enrollment.

     If PEBB health plan enrollment ended due to the death of the employee or retiree, PEBB will reinstate health plan enrollment without a gap subject to payment of premium. In order to avoid duplication of group medical coverage, surviving dependents may defer enrollment in a PEBB health plan under WAC 182-12-200 and 182-12-205. To notify the PEBB program of their intent to enroll or defer enrollment in a PEBB health plan, the surviving dependent must submit the appropriate forms to the PEBB program no later than sixty days after the date of death of the employee or retiree.

[Statutory Authority: RCW 41.05.160. 09-23-102 (Order 09-02), § 182-12-265, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-12-265, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-12-265, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160 and 41.05.068. 06-23-165 (Order 06-09), § 182-12-265, filed 11/22/06, effective 12/23/06. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-12-265, filed 7/27/05, effective 8/27/05. Statutory Authority: RCW 41.05.160 and 41.05.165. 04-18-039, § 182-12-265, filed 8/26/04, effective 1/1/05.]

OTS-4245.1

AMENDATORY SECTION(Amending Order 09-02, filed 11/17/09, effective 1/1/10)

WAC 182-16-020   Definitions.   As used in this chapter the term:

     (("Administrator" means the administrator of the health care authority (HCA) or designee;))

     "Agency" means the health care authority;

     "Dependent care assistance program" or "DCAP" means a benefit plan whereby state and public employees may pay for certain employment related dependent care with pretax dollars as provided in the salary reduction plan authorized in chapter 41.05 RCW.

     "Director" means the director of the health care authority (HCA) or designee;

     "Employer group" means those employee organizations representing state civil service employees, counties, municipalities, political subdivisions, tribal governments, school districts, and educational service districts participating in PEBB insurance coverage under contractual agreement as described in WAC 182-08-230.

     "Employing agency" means a division, department, or separate agency of state government, including an institution of higher education; a county, municipality, school district, educational service district, or other political subdivision; or a tribal government covered by chapter 41.05 RCW.

     "Enrollee" means a person who meets all eligibility requirements defined in chapter 182-12 WAC, who is enrolled in PEBB benefits, and for whom applicable premium payments have been made.

     "Health plan" or "plan" means a medical or dental plan developed by the public employees benefits board and provided by a contracted vendor or self-insured plans administered by the HCA.

     "Insurance coverage" means any health plan, life insurance, long-term care insurance, long-term disability insurance, or property and casualty insurance administered as a PEBB benefit.

     "Medical flexible spending arrangement" or "medical FSA" means a benefit plan whereby state and public employees may reduce their salary before taxes to pay for medical expenses not reimbursed by insurance as provided in the salary reduction plan authorized in chapter 41.05 RCW.

     "PEBB" means the public employees benefits board.

     "PEBB appeals committee" means the committee that considers appeals relating to the administration of PEBB benefits by the PEBB program. The ((administrator)) director has delegated the authority to hear appeals at the level below an administrative hearing to the PEBB appeals committee.

     "PEBB benefits" means one or more insurance coverage or other employee benefit administered by the PEBB program within the HCA.

     "PEBB program" means the program within the HCA which administers insurance and other benefits for eligible employees (as defined in WAC 182-12-114), eligible retired and disabled employees of the state (as defined in WAC 182-12-171), eligible dependents (as defined in WAC 182-12-250 and 182-12-260), and others as defined in RCW 41.05.011.

     "Premium payment plan" means a benefit plan whereby state and public employees may pay their share of group health plan premiums with pretax dollars as provided in the salary reduction plan.

     "Salary reduction plan" means a benefit plan whereby state and public employees may agree to a reduction of salary on a pretax basis to participate in the DCAP, medical FSA, or premium payment plan as authorized in chapter 41.05 RCW.

     "State agency" means an office, department, board, commission, institution, or other separate unit or division, however designated, of the state government and all personnel thereof. It includes the legislature, executive branch, and agencies or courts within the judicial branch, as well as institutions of higher education and any unit of state government established by law.

     "Subscriber" means the employee, retiree, COBRA beneficiary or eligible survivor who has been designated by the HCA as the individual to whom the HCA and contracted vendors will issue all notices, information, requests and premium bills on behalf of enrollees.

[Statutory Authority: RCW 41.05.160. 09-23-102 (Order 09-02), § 182-16-020, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-16-020, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-16-020, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.010 and 34.05.250. 91-14-025, § 182-16-020, filed 6/25/91, effective 7/26/91.]

Note:

Eligibility decisions address whether a subscriber or a subscriber's dependent is entitled to insurance coverage, as described in PEBB rules and policies. Enrollment decisions address the application for PEBB benefits as described in PEBB rules and policies including, but not limited to, the submission of proper documentation and meeting enrollment deadlines.

     (1) Any employee of a state agency or his or her dependent aggrieved by a decision made by the employing state agency with regard to public employee benefits eligibility or enrollment may appeal that decision to the employing state agency by the process outlined in WAC 182-16-030.

     (2) Any employee of an employer group or his or her dependent who is aggrieved by a decision made by an employer group with regard to PEBB eligibility or enrollment may appeal that decision to the employer group through the process established by the employer group.

Exception:

Appeals by an employee of an employer group or his or her dependent based on eligibility or enrollment decisions regarding life insurance or long-term disability insurance must be made to the PEBB appeals committee by the process described in WAC 182-16-032.

     (3) Any ((employee, self-pay enrollee, retiree,)) subscriber or dependent aggrieved by a decision made by the PEBB program with regard to public employee benefits eligibility, enrollment, or premium payments may appeal that decision to the PEBB appeals committee by the process described in WAC 182-16-032.

     (4) Any PEBB enrollee aggrieved by a decision regarding the administration of a PEBB medical plan, self-insured dental plan, insured dental plan, life insurance, long-term care insurance, long-term disability insurance, or property and casualty insurance may appeal that decision by following the appeal provisions of those plans, with the exception of eligibility, enrollment, and premium payment determinations.

     (5) Any PEBB enrollee aggrieved by a decision regarding the medical flexible spending arrangement (FSA) or dependent care assistance program (DCAP) offered under the state's salary reduction plan may appeal that decision by the process described in WAC 182-16-036.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-16-025, filed 10/6/10, effective 1/1/11.]

     (2) An eligibility or enrollment decision made by an employer group regarding life insurance or long-term disability insurance may be appealed by submitting a notice of appeal to the PEBB appeals committee.

     (3) The contents of the notice of appeal are to be provided in accordance with WAC 182-16-040.

     (((1))) (4) The notice of appeal from an employee or employee's dependent must be received by the PEBB appeals manager within thirty days of the date of the denial notice ((by the PEBB program)).

     (((2))) (5) The notice of appeal from a retiree, self-pay enrollee, or dependent of a retiree or self-pay enrollee must be received by the PEBB appeals manager within sixty days of the date of the denial notice ((by the PEBB program)).

     (((3))) (6) The PEBB appeals manager shall notify the appellant in writing when the notice of appeal has been received.

     (((4))) (7) The PEBB appeals committee shall render a written decision within thirty days of receiving the notice of appeal. The written decision shall be sent to the appellant.

     (((5))) (8) Any appellant who disagrees with the decisions of the PEBB appeals committee may request an administrative hearing, as described in WAC 182-16-050.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-16-032, filed 10/6/10, effective 1/1/11; 09-23-102 (Order 09-02), § 182-16-032, filed 11/17/09, effective 1/1/10; 08-20-128 (Order 08-03), § 182-16-032, filed 10/1/08, effective 1/1/09.]

     (2) The request must be made in writing to the PEBB appeals manager. The PEBB appeals manager must receive the request for an administrative hearing within thirty days of the date of the written decision by the PEBB appeals committee.

     (3) The agency shall set the time and place of the hearing and give not less than twenty days notice to all parties.

     (4) The ((administrator)) director, or his or her designee, shall preside at all hearings resulting from the filings of appeals under this chapter.

     (5) All hearings must be conducted in compliance with these rules, chapter 34.05 RCW and chapter 10-08 WAC as applicable.

     (6) Within ninety days after the hearing record is closed, the ((administrator)) director or his or her designee shall render a decision which shall be the final decision of the agency. A copy of that decision shall be mailed to all parties.

[Statutory Authority: RCW 41.05.160. 10-20-147 (Order 10-02), § 182-16-050, filed 10/6/10, effective 1/1/11; 08-20-128 (Order 08-03), § 182-16-050, filed 10/1/08, effective 1/1/09; 07-20-129 (Order 07-01), § 182-16-050, filed 10/3/07, effective 11/3/07. Statutory Authority: RCW 41.05.160, 41.05.350, and 41.05.165. 05-16-046 (Order 05-01), § 182-16-050, filed 7/27/05, effective 8/27/05. Statutory Authority: RCW 41.05.160. 97-21-128, § 182-16-050, filed 10/21/97, effective 11/21/97. Statutory Authority: RCW 41.05.010 and 34.05.250. 91-14-025, § 182-16-050, filed 6/25/91, effective 7/26/91.]

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