What happens if I stop working?

Your coverage is tied to your eligibility for the “employer contribution” (i.e., what your SEBB organization pays toward your coverage). When you stop working it’s called “terminating employment.” Whether it’s you or your SEBB organization who terminates your employment, you lose eligibility and may also lose your benefits.

This page helps you understand when coverage ends and what options are available.

On this page

When does my coverage end?

Your and your dependent's SEBB benefits end the last day of the month that:

  • Your SEBB organization terminates your employment.
  • You resign.
  • Your SEBB organization no longer anticipates you to be eligible for the employer contribution.

Exception: If the SEBB organization deducted your premium for SEBB insurance coverage after you were no longer eligible for the employer contribution, SEBB benefits end the last day of the month for which employee premiums were deducted.

What are my options?

  • You may be eligible to enroll on your spouse’s, state-registered domestic partner’s, or parent’s SEBB coverage as a dependent.
  • You may be eligible for Public Employees Benefits Board (PEBB) retiree insurance coverage.
  • You and your dependents may be able to temporarily continue your SEBB coverage by self-paying the premiums and applicable premium surcharges on a post-tax basis. This is called SEBB Continuation Coverage and your SEBB organization will make no contribution toward the premiums.
  • The Health Insurance Marketplace offers private health insurance options. You can find out if you’re eligible for a tax credit that lowers your monthly premiums and out-of-pocket costs. You’ll also learn if you qualify for free or low-cost coverage from Medicaid or the Children’s Health Insurance Program (CHIP).

More about continuation coverage

SEBB Continuation Coverage includes COBRA and Unpaid Leave. COBRA and Unpaid Leave temporarily extend SEBB health plan coverage when your or your dependent’s SEBB coverage ends due to a qualifying event. You can enroll in only one of these options at a time.

What happens to my FSA or DCAP?

You are no longer eligible to contribute to your Flexible Spending Arrangement (FSA) or Dependent Care Assistance Program (DCAP) when:

  • Your SEBB coverage ends
  • You go on Unpaid Leave that is not approved under the Family and Medical Leave Act (FMLA), the Washington Paid Family and Medical Leave program, or military leave.

When does my eligibility end?

On the last day of the month you lose coverage or go on unapproved leave.

What about filing claims?

For your FSA, you will be able to claim only expenses that happened while you were employed, up to your remaining benefit (account balance) — unless you are eligible to continue your FSA under SEBB Continuation Coverage, through Navia Benefit Solutions. To learn more, visit the Navia member portal or call 1-800-669-3539.

If you have unspent DCAP funds when you end employment, you may continue to submit claims for eligible expenses as long as the expenses allow you to attend school full-time, look for work, or work full-time. Claims may be submitted up to your account balance by March 31 of the following plan year. You cannot incur expenses after December 31 of the plan year. There are no continuation coverage rights for DCAP.

What happens to my HSA?

Any unspent health savings account (HSA) funds will stay available to you, unless you close your account. However, no one can contribute to your HSA. You can use your HSA funds on qualified medical expenses, or you can leave them for the future.

Call HealthEquity at 1-844-351-6853 with questions about how your HSA works when coverage ends. If you set up automatic payroll deductions to your HSA, contact your payroll office to stop them. If you set up direct deposits to your HSA, call HealthEquity to stop them.

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