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Committee hears briefing on bill to end SmartHealth incentives for public employees
Summary
Staff told the Ways & Means Committee that Senate Bill 5807 would eliminate the SmartHealth online portal and associated $125 wellness incentive for public and school employees beginning Jan. 1, 2028; employee unions testified in opposition, citing lost negotiated benefits and impacts on lower-wage workers.
Senate Bill 5807 would eliminate the SmartHealth online portal and the $125 annual wellness incentive currently available to public employees and school employees, staff told the Ways & Means Committee at its April 16 hearing.
The bill, Amanda Cecil, staff to the committee, said in a briefing, would end the SmartHealth program offered by PEB and SEBB as of Jan. 1, 2028; employees who earn incentives through Dec. 30, 2027, would still receive them during calendar year 2028. Cecil said the Office of Financial Management's fiscal note projects $2.1 million in savings beginning in fiscal 2028 and about $7.4 million per year beginning in fiscal 2029, reflecting both elimination of the portal and of the $125 incentive payments.
Why it matters: unions and advocates said the incentives are part of bargained benefits that help lower-wage employees offset health costs and support preventive care.
During the public hearing, Seamus Petrie of the Washington Public Employees Association said WPEA cannot support SB 5807 because it “does make a cut to a negotiated benefit.” He added that the union recognized improvements in the bill compared with an earlier proposal and thanked committee members for listening to members’ concerns. Kurt Spiegel, executive director of the Washington Federation of State Employees, said the incentive “helps offset health care costs” for lower-wage workers and again urged lawmakers not to balance budgets on employees’ negotiated benefits.
The staff briefing described the current scope of allowable wellness incentives — smoking cessation, diabetes management, weight reduction, exercise, safety training and nutrition education — and noted that PEB and SEBB already offer smoking-cessation and diabetes programs. The fiscal summary presented by staff estimated that, when fully implemented, the change would lower premium rates by about $1.50 per member per month for SEBB and about $2.80 per member per month for PEB.
No formal committee vote on the bill was recorded during the hearing. The committee chair closed the public hearing after invited testimony and reminded people that written testimony could be submitted through the portal until 5:30 p.m. the following day.
The hearing record is primarily staff briefing and public comment; the bill text and fiscal note would be the primary sources for final fiscal and implementation details.
Looking ahead: committee staff said they are available for follow-up questions; unions signaled continued outreach to lawmakers.
