This bill addresses the employer contributions and incentives for public and school employee health benefit plans in Washington State, particularly in response to a significant budget shortfall. It introduces a new section emphasizing fiscal management and flexibility in setting employer contribution rates for employee health care benefits during the 2027-2029 fiscal biennium. The bill proposes the elimination of the smart health program, which includes wellness incentives and an online portal, while ensuring that employees who meet eligibility requirements by the end of 2027 will still receive their wellness incentives in the following plan year. Additionally, it amends several sections of the Revised Code of Washington (RCW) to enhance the public employees' benefits board's role in developing comprehensive health care benefits, including provisions for wellness initiatives and eligibility criteria.

Significant changes include the establishment of new requirements for the governor's requests for funds to the legislature, which must be submitted by October 1st prior to the legislative session and certified as financially feasible. The bill clarifies that for the 2027-2029 fiscal biennium, the legislature will set the dollar amount expended on behalf of each employee for health care benefits, and collective bargaining agreements during this period will not include employer health care contributions or related provisions. Furthermore, it outlines the structure and responsibilities of the school employees' benefits board and allows the public employees' benefits board to impose penalties on agencies that fail to meet eligibility criteria. Overall, the bill aims to balance fiscal responsibility with the need to provide quality health care for state employees while streamlining the negotiation process regarding health care benefits.

Statutes affected:
Original Bill: 41.05.065, 41.05.740, 41.80.020, 41.58.070, 41.59.105, 47.64.270