School employees, including administrators, have a number of benefits of which they may not be aware. Below is a brief description of some of the benefits and the bills that passed related to these benefits. These relate to PERS, SERS, SEBB, and/or PEBB members. The Flexible Spending Arrangement (FSA) program is an option to not only save tax dollars but also cover health expenses.Â
Vaccinations/HIV Coverage
ESHB 2242–Preserving access to preventive services by clarifying state authority and definitions, primarily vaccinations/immunizations and ensuring no cost coverage. Â
SSB 6183–Concerning coverage for HIV antiviral drugs. For health plans, including plans offered to public employees, issued or renewed on or after January 1, 2027, a health carrier shall provide coverage for all FDA-approved HIV antiviral drugs without prior authorization, step therapy, or any other utilization management protocols. Â
These bills are a reaction to the Federal changes concerning vaccinations and HIV treatment. Washington state, similar to other states, is ignoring the Federal proposals and is allowing these no-cost vaccines and covering their use. The Health Care Authority (HCA) requires that all carriers provide these services as determined by the state.
Retiree Health Insurance
The premium cost for Medicare retirees is currently subsidized by the state for up to $183 or 50% of the premium, whatever is less. The adopted budget preserves this subsidy.
Flexible Spending Arrangement (FSA) for SEBB Members
25,717 school employees are eligible for the collective bargaining agreement (CBA) Flexible Spending Arrangement benefit for plan year 2026. This is a tax savings benefit. This is the second year of this benefit being offered in SEBB.
HCA/SEBB actively communicates with HR and employees about this program.
FSA funds can be deducted from an employee’s paycheck before taxes to reduce their taxable income. FSA funds can be used with an FSA debit card to pay for out-of-pocket health care costs like deductibles, co-pays, coinsurance, prescriptions, first-aid supplies, sunscreen, vision hardware, dental services and more.
Maximum election: Any member regardless of income can choose an election amount between $120 and up to $3,400 per year for 2026. Employers will deduct the election amount from paychecks in equal amounts throughout the year based on the number of paychecks the member receives. Funds contributed by an employer are often covered in CBAs and do not count toward the maximum election amount.
There is a special bonus for those with smaller incomes. Currently it can be bargained for eligible school employees to receive a $200 FSA. Eligible recipients do not need to actively enroll in an FSA to receive the $200 FSA. Eligible employees (both represented and non-represented) must meet all the following requirements among other requirements in order to get this bonus: Must have earned $40,000 or less for the state fiscal year prior to the plan year as reported to Department of Retirement Systems (DRS). If there is carryover, the limit is $680. Any amount over the carryover limit will be retained by the Health Care Authority (HCA).
PEBB Issues for Retirees and Non-retirees
The PEB Board is currently looking at policy updates regarding deferring retiree PEBB rights. A reminder that if one elects to not receive PEBB coverage after retirement, he/she must either have other credible coverage (determined by HCA) or a deferral. If either condition is not met, then an individual waives their rights to any future coverage under PEBB. These policies concern those retirees who either on a temporary or permanent basis live outside the U.S.
Flexible Spending Arrangement (FSA) for PEBB Members
This is the seventh year of offering this PEBB benefit primarily for PERS members. There are some differences with the SEBB FSA program.
Eligible recipients do not need to actively enroll in an FSA to receive the $300 CBA FSA. Eligible recipients must have a rate of pay on November 1, 2025 of $68,004 or less for a full-time equivalent position. Any member can choose an election amount between $120 and up to $3,400 per year for 2026 regardless if he/she qualifies for the bonus. If an eligible individual whose income meets the threshold does not enroll, he/she is still issued $300 credit and given a debit card from the program administrator (Navia). There is a 2027 carryover limit: $680. Per IRS rules, any amount over the carryover limit is retained by the Health Care Authority (HCA).
Some data about Flexible Spending : In 2026, there were 22,496 eligible employees. In 2025, 15% used all their benefit; 34% used some, and 51% used none of their benefit.
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