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Governor Proposes Merger of Department of Retirement Systems, Health Care Authority
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For Immediate Release: 02/09/2009

On February 9, Governor Gregoire announced her plan to combine the Department of Retirement Systems (DRS) and the Health Care Authority (HCA) into a single agency. This proposal is part of her broader plan to reform state government, and revamp the way Washington State provides programs and services.

The Governor’s reform initiative focuses on three major goals:

  1. Reduce the size of government bureaucracy.
  2. Deliver 21st century customer service.
  3. Streamline government operations.

1. Is the Governor’s proposal to combine DRS and HCA just a way to save money?

No.  Since DRS and HCA share many of the same customers and stakeholders, she believes that merging the two agencies will provide opportunities to improve customer service, coordinate health and retirement policies and funding, and focus more attention on state pensions.

2. When will the two agencies merge?

At this time, both agencies will continue to operate separately. The Governor has asked HCA’s Administrator, Steve Hill, to lead the merger, and intends to appoint Steve as director of the merged agencies.

The process of merging these two agencies will take time to implement, as each agency has different laws and rules. Only the Governor and Legislature can change those laws, which is unlikely before the 2010 legislative session.

3. Who should I contact for questions on my health benefits or retirement planning?

You can continue to contact the PEBB Program for questions on your health benefits, and DRS for your retirement and pension-related questions.

4. Will the HCA move to Tumwater, or DRS move to Lacey?

At this point, we do not expect that the offices will move as a result of the merger; however, we will keep you updated as we have more information.

5. What updates can stakeholders expect to hear?

The next steps are for both agencies to form teams, and engage employees and stakeholders in that process. We will look for opportunities to learn from each other in areas of outreach, customer service, communications, human resource practices, and other shared services. Both DRS and HCA will work with their stakeholders and other interested parties to get their input and keep them informed as our work to combine the agencies progresses.