The bill addresses fiscal management in Washington State amidst a 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 proposes the elimination of the smart health program, which includes wellness incentives and an online portal, while ensuring that eligible employees who qualify by the end of 2027 will still receive their wellness incentives in 2028. The bill also amends several sections of the Revised Code of Washington (RCW) to reflect these changes, emphasizing the development of comprehensive health care benefits by the public employees' benefits board while considering cost containment and access to quality care.

Additionally, the bill establishes new provisions for the school employees' benefits board and mandates the health care authority to create a consumer education program on long-term care options. It allows the public employees' benefits board to impose penalties on agencies that do not meet eligibility criteria and outlines the structure and responsibilities of the school employees' benefits board. Significant changes include the phasing out of the wellness incentive program by January 1, 2028, and stipulations that the legislature will set the dollar amount for health care benefits during the 2027-2029 fiscal biennium, excluding certain employer contributions. The bill also clarifies the bargaining process for health care benefits, ensuring negotiations occur in even-numbered years and that agreements for the specified biennium will not include health care contributions or related expenses.

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