The bill addresses fiscal management in Washington State amidst a significant budget shortfall, particularly focusing on employer contributions to public and school employee health benefit plans. It introduces a new section that allows for flexibility in setting employer contribution rates for employee health care benefits during the 2027-2029 fiscal biennium. The legislation aims to eliminate 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, the bill 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 cost containment strategies.

Furthermore, the bill establishes a framework for the school employees' benefits board and mandates the health care authority to create a consumer education program for eligible employees regarding long-term care options. It allows the public employees' benefits board to impose penalties on agencies that do not comply with eligibility criteria and outlines the responsibilities of the school employees' benefits board. Significant changes include the stipulation that collective bargaining agreements for the 2027-2029 fiscal biennium will not include employer health care contributions. The bill also amends the process for the governor's fund requests to the legislature, requiring certification of financial feasibility and setting specific deadlines, while clarifying that these provisions do not apply for the 2027-2029 fiscal biennium.

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