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Separation (Employment Ending)
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General Information and Requirements

Updated 4/6/2009

Applicable to:

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

Relevant Rule:

  • When an employee separates employment due to termination, the employee and their covered dependents are no longer eligible for PEBB employer provided benefits. (WAC 182-12-133)
  • PEBB medical, dental, and life insurance will cease at midnight, the last day of the month in which employment ends. (WAC 182-12-131)
  • The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives the employee and their covered dependents the right to continue coverage by self-paying premiums to HCA. (WAC 182-12-131)
  • Basic long-term disability insurance ceases at midnight on the date employment ends. Optional coverage ceases at midnight, the last day of the month in which employment ends, or the last day in which a required premium payment was made. (WAC 182-12-131)
  • Retiring employees may choose to elect PEBB-sponsored retiree coverage if eligible. (WAC 182-12-171)
Employer must... ...within... ...or this will happen
Terminate employee’s PEBB benefits in PAY1 30 days from the date employment ends, or as soon as the employee’s end date is known The Continuation of Coverage Election Notice will be delayed, resulting in benefit enrollment delays, and possible payment hardships
  • HCA will send the employee the Continuation of Coverage Election Notice packet in the mail after the employee coverage has been terminated in PAY1. (This can take up to 14 days after benefits have been terminated in PAY1).
Employees applying for COBRA must... ...within... ...or this will happen
Complete the PEBB-COBRA Continuation of Coverage form 60 days from the postmark date of the Continuation of Coverage Election Notice PEBB coverage will end on the last day of the month in which employer provided coverage was terminated
Mail or hand-deliver the COBRA Continuation of Coverage form to the PEBB program (address provided in packet) 60 days from the postmark date of the Continuation of Coverage Election Notice Lose right to continue coverage
Make first payment to HCA for continuation of coverage 45 days after the date coverage is elected Lose right to continue coverage

Additional Information

Employees who have... ...may... ...within
A spouse or qualified domestic partner also covered by PEBB benefits Enroll under the spouse or qualified domestic partner’s medical and or dental coverage as a dependent 60 days from the date the employees employer provided coverage ends
PEBB life insuranceConvert coverage to an individual term policy (if covered for 5 years or more) 31 days from the date the employees employer provided coverage ends or,
60 days from the date the employees employer coverage ended if retiring
A spouse or qualified domestic partner also covered by PEBB benefits Transfer a portion of their optional life insurance to the spouse or qualified domestic partner’s PEBB coverage up to the eligible limits (see bullet below) 31 days from the date the employees employer provided coverage ends
A Flexible Spending Account (FSA) through ASI Apply for Continuation of Coverage through ASI to extend their period of coverage, so that they may claim expenses incurred after employment ends (see FSA/DCAP FAQ bullet below) 60 days from the date the employees employer provided coverage ends
A spouse or qualified 152 domestic partner also covered by PEBB benefits Enroll in or change their election through ASI for a Flexible Spending Account (see FSA/DCAP FAQ bullet below) 60 days from the date the employees employer provided coverage ends


Employees applying for PEBB retiree coverage must... ...within... ...or this will happen
Complete the PEBB Retiree Coverage Election form to enroll or defer coverage 60 days from the postmark date of the Continuation of Coverage Election Notice Lose future right to enroll in PEBB retiree coverage
Mail, hand-deliver or fax the Retiree Coverage Election form to the PEBB program (deliver to the address provided in their packet or fax to 360 923-2608) 60 days from the postmark date of the Continuation of Coverage Election Notice Lose future right to enroll in PEBB retiree coverage
Make the first full payment to HCA for continuation of coverage (if not electing pension deduction from Department of Retirement Systems) 45 days after the date coverage is elected Lose future right to enroll in PEBB retiree coverage

Guidance Resources

Forms

Rates

System Keying in PAY1

Common Questions and Issues:

PEBB Knowledge Base – You may direct employees to the PEBB website (www.pebb.hca.wa.gov) search to view these and other commonly asked questions.

Pers/Pay Knowledge Base

WAC References and their general subject matter

  • Html 182-08-198 When may a subscriber change health plans?
  • Html 182-12-121 Does a change in position or job affect eligibility status?
  • Html 182-12-131 When does employer paid insurance coverage end?
  • Html 182-12-133 Options for continuing coverage when no longer eligible for employer coverage
  • Html 182-12-171 When are retiring employees eligible to enroll in retiree insurance?
  • Html 182-12-262 When can a subscriber enroll, waive, or remove eligible dependents?

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