The bill amends RCW 41.05.085 to align the statutory language regarding health insurance subsidies for retired state employees and retired or disabled school employees with the historical interpretation and implementation of the relevant subsidy language in the operating budget. The legislature is tasked with establishing a portion of the insurance benefit allocation specifically for a subsidy aimed at reducing medical and prescription drug insurance premiums for eligible retired or disabled school district and educational service district employees, as well as retired state employees who qualify for Medicare parts A and B.

Key changes include the removal of references to a separate health care subsidy for those selecting Medicare supplemental insurance policies, and the introduction of language that clarifies the subsidy will cover both medical and prescription drug premiums. The bill also stipulates that the public employees' benefits board will determine the amount of premium reduction, which cannot exceed fifty percent unless necessary to meet federal program eligibility requirements.

Statutes affected:
Original Bill: 41.05.085
Bill as Passed Legislature: 41.05.085
Session Law: 41.05.085