Double Coverage Surcharge Implementation Recommendations

The recommendations from the Innovation Workgroup involve imposing a $25 monthly surcharge on PEBB/OEBB subscribers for each dependent with other employer-sponsored coverage. The surcharge aims to discourage double coverage from PEBB/OEBB, effective from October 1, 2020, for OEBB and January 1, 2021, for PEBB.

• Double Coverage Surcharge
• Implementation
• Recommendations
• Health Benefits
• Innovation Workgroup

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1. Attachment: January 2020 HB 2266 Double Coverage Surcharge OEBB and PEBB Innovation Workgroup Recommendations Place Your Logo Here - Align Center

2. Impacts of HB 2266 HB 2266: Reversed SB 1067 language that prohibited double coverage and opt out incentives set to take effect Oct. 1, 2019 (OEBB) and Jan. 1, 2020 (PEBB). Requires both Boards to impose a surcharge on eligible employees who cover their dependents (spouse and/or child) if the spouse and/or child is covered as an employee in their own health benefit plan offered by PEBB or OEBB (double coverage). Requires the Boards to determine the amount of the surcharge. 2

3. Surcharge The purpose of the surcharge is to discourage employees from taking the additional state funded coverage (double coverage from PEBB/OEBB). Surcharges take effect: OEBB on Oct. 1, 2020; and PEBB on January 1, 2021 3

4. Recommendations The innovation workgroup proposed the following recommendation: $25 monthly surcharge applied to every PEBB/OEBB subscriber, for any dependent (spouse and/or child(ren)) that has other employer sponsored coverage as a subscriber. $25 monthly surcharge. Surcharge is applied only to active employees. Surcharge does not apply to COBRA, Retirees or Self-Pay Members. 4