SEBB (School Employees Benefits Board) has moved to eight hour meetings in order to develop the insurance plans for 140,000 K 12, charter school, and Educational Service District (ESD) employees starting January 1, 2020. At their recent September 17 meeting, the Board decided to offer a standalone vision plan (rather than an embedded vision plan in a medical plan). With that decision, the Health Care Authority (HCA) can go out to bid and negotiate plan costs.
Another issue raised, but no decision made, was the placement of K 12 non-medicare retirees (about 4,000 retirees) who are in the PEBB insurance risk pool. The issue is whether they should be moved into the SEBB actives insurance risk pool. PSE supports moving them into the SEBB actives insurance pool.
At their August 30 meeting, the Board passed a couple of resolutions approved relating to employee eligibility (the focus for many of these resolutions is part time employees who are close to the 630 hour requirement – 3.5 hours per day for 180 school days.) For instance, one resolution allows the “stacking” of hours in order to qualify for eligibility (allows employees who work in several positions to combine their hours for eligibility).
If you would like more information on all the resolutions passed, most recent major news, or the comprehensive meeting materials (go to the “briefing book”), go to the SEBB website; it is very helpful and because there is so much going on, regularly updated.
Next meeting: October 4.
Unions representing 98% of the 140,000 K 12 employees have ratified the first ever agreement with Governor Inslee’s Office of Financial Management (OFM) on SEBB funding levels for the 2020 launch of SEBB. It is too early to publish the details of the agreement but I can say that all of the unions were pleased with the outcome. We expect details to be available on October 1 and then we wait for OFM to determine if the agreement is financially feasible. If they determine it is financially feasible, then Governor Inslee must put the required funds into his 2019-21 budget. Then we have to encourage the legislature to fully fund SEBB. Many steps to go but we are on the right path.
On August 7 the State made its first proposal to the SEBB negotiating committee. Though we/I won’t be sharing details of proposals and counter-proposals, I can say that the State’s proposal was responsive and helpful as both sides work to reach a tentative agreement by September 11.
Yesterday, the SEBB (School Employees Benefits Board) spent nearly four hours discussing and developing more of the infrastructure necessary to put plans in place by 2020. Though they are nowhere near to making final decisions (something that won’t happen until a year from now), they are slowly and deliberately putting together the foundation that the plans will be based upon. So what did they decide? Mostly, they were deciding naturally occurring eligibility issues like:
… if a school employee’s work pattern is or will be revised such that he or she is now anticipated to work 630 hours for the school year, the school employee establishes eligibility for the employer contribution toward SEBB benefits as of the date the school employee is anticipated to work 630 hours for the school year;
…the employer contribution toward SEBB benefits ends the last day of the month in which the school year ends. The employer contribution toward SEBB benefits will end earlier than the end of the school year if one of the following occurs: • The SEBB organization terminates the employment relationship. In this case eligibility for the employer contribution ends the last day of the month in which the employer-initiated termination notice is effective; • The school employee terminates the employment relationship. In this case, eligibility for the employer contribution ends the last day of the month in which the school employee’s resignation is effective; or • The school employee’s work pattern is revised such that the school employee is no longer anticipated to work 630 hours during the school year. In this case, eligibility for the employer contribution ends as of the last day of the month in which the change is effective;
…a school employee who is not anticipated to work 630 hours in the school year, but actually does work 630 hours, establishes eligibility for the employer contribution toward SEBB benefits as of the date the school employee worked 630 hours.
…a school employee who wants to enroll his or her dependent is required to provide evidence of the dependent’s eligibility. If the school employee does not submit the required evidence to verify his or her dependent’s eligibility within the HCA’s required timeframe, the dependent will not be enrolled. • The school employee’s next opportunity to enroll the dependent, if eligible, would be the next eligible open enrollment.
Other areas of discussions but no decisions at this time were:
…how much the Life and AD&D (Accidental Death and Dismemberment), coverage should be;
…how many CAM (chiropractice, acupuncture, and massage) visits should be in the self-insured plan;
…should the HCA (Health Care Authority) recommend moving K 12 retirees into SEBB or keep them in PEBB.
The full meeting package covering all of these topics can be found here.
Next meeting of SEBB is August 30. Some of the meeting eligibility subjects they will be considering are behind Tab 8 starting on page 160.
At today’s PEBB meeting, the Board quickly approved the insurance plans and premiums for 2019. Without any debate, the Board unanimously approved all recommendations made by the HCA (Health Care Authority). After the votes were concluded, there were congratulatory messages to the HCA for their hard work putting together not only the plans, but, the low premium increases members will be pleased to see.
If you are interested in the rates for the different plans, please review my previous blog.
…the Board approved an open enrollment period sometime during the first quarter of 2019 for LTD (Long Term Disability) optional insurance so that members may purchase optional LTD or change their benefit waiting period without providing evidence of insurability.
…another presentation, and longer discussion, regarding the impact of moving K 12 Medicare retirees from the PEBB system to the SEBB system (there are more K 12 retirees than state employee retirees in the PEBB Medicare pool.) This is a difficult issue that may affect both SEBB and PEBB. As a result, the HCA has decided to have a special SEBB/PEBB joint meeting on September 17 to make sure both boards are getting the same information at the same time, and even more important, each board will share their opinions before HCA finalizes the report to the legislature by December 2018.
With little fanfare and no one taking up the opportunity to watch the riveting (okay maybe it was only interesting) discussion, the SEBB negotiation committee met with Governor Inslee’s Office of Labor Relations last Friday to begin what we hope will be concluded in the next six weeks. Shawn Lewis, chief spokesperson for the committee, ended the day with a presentation of the union’s proposal (he calls it a supposal). Though a great deal of it is highly technical, it basically comes down to the following:
…we want the State to fund at least the same rate for K 12 as for State Employees ($1,050 per FTE vs our current rate of $843.97 per FTE).
…we want the State to fully fund K 12 employees who are anticipated to work more than 630 hours in a calendar year (State costs nearly $130 million per year).
…we want the State to fully fund the retiree payment (currently $64.07 per FTE).
…we want the State to provide us 90/10 premium share – employer (State) pays 90 percent of monthly premiums, employee pays 10%.
…we want the State to provide us insurance plans that are at least 88% actuarial value – the higher the value, the less employees have to pay.
We hope to have negotiations concluded by September 11. Next negotiation session: August 7, Teamsters Hall in Tukwila (see an earlier post for address).
The PEBB (Public Employees Benefits Board) is the board responsible for developing insurance plans for state and higher education employees, plus nearly 3,000 K 12 employees. This board is the model for the SEBB (School Employees Benefits Board).
At yesterday’s PEBB meeting, the Board set the stage for final decisions on 2019 insurance plans at next week’s July 25 meeting. Based on my experience, what was presented and discussed yesterday will be approved at the next meeting. Here are the major takeaways from the meeting:
Here is the complete package of information for those who would like to go through the many details shared at the meeting.
SEBB negotiations with OFM (Office of Financial Management) will start on July 20 at 10:00 am at the WEA headquarters in Federal Way (32032 Weyerhaeuser Way S, Federal Way, WA 98001.) It is expected the negotiations will conclude by 2:00 pm. PSE members interested in attending and observing the negotiations should feel free to attend if they are in the area. Whether you want to come in for a couple minutes or the entire time is up to you.
Other dates and locations for meetings will be as follows (all times are expected to be from 10:00 am – 2:00 pm):
August 7 – Teamsters Building in Tukwila (address – 14675 Interurban Ave S #307, Tukwila, WA 98168)
August 16 – WEA headquarters
September 6 – WEA headquarters
September 11 – WEA headquarters
Yesterday, the SEBB negotiating committee met to finalize operating rules as well as our first negotiation proposal for insurance funding starting January 1, 2020. The committee is composed of representatives from WEA (committee chair and spokesperson), PSE, Teamsters, SEIU 925, AFT (American Federation of Teachers), and Operating Engineers. In the future, there may be a representative from the Association of Washington School Principals (AWSP). We have left seats open for 3 other representatives of other organizations who represent school employees but have not yet responded to our efforts to get their input.
Our negotiation proposal will be shared after we have had an opportunity to meet with representatives of OFM (Office of Financial Management). OFM is responsible for representing Governor Inslee during these negotiations. Rest assured we are asking for full funding of the classified employee insurance benefit factor . Without the state funding for the factor, school districts will face a significant cost to their local budgets.
As you can tell, I am catching up on the many activities surrounding SEBB. Another RFP was recently released by the HCA (Health Care Authority) for insurance companies interested in offering “fully insured” medical insurance to SEBB participants. “Fully insured” is a term for the insurance products K 12 employees have traditionally been offered. The reason for using the term now is that Washington State (actually the Health Care Authority) will be offering a “self-insurance” plan to all K 12 employees. This plan is likely to be very similar to the plan the HCA offers state employees in PEBB – known as the Uniform Medical Plan.
Proposals are due by August 2 with final approval of plans by November 9, 2018.