OptiFlex and Self-funded Groups Impacted by Sales Tax Expansion

As a reminder, Washington state expanded its sales tax to include additional digital services effective October 1, 2025. Self-funded and OptiFlex groups with a Washington address listed in their contract were impacted by the sales tax expansion.

Previously we communicated that Premera is not collecting sales tax on any portion of the administrative fee. However, the tax does apply to certain digital solutions, including Payment Integrity and Rx Saving Solutions. In addition, we recently confirmed with the Washington state Department of Revenue (DOR) that Digital Health Messages are classified as a digital good and are therefore subject to sales tax unless purchased solely for a business purpose.

While Digital Health Messages are typically purchased for business use, the DOR requires documentation to substantiate this exemption. Accordingly, to avoid the application of sales tax to this program, we’re requesting that self-funded groups utilizing Digital Health Messages submit an Exemption Certificate indicating that the digital goods are “purchased solely for a business purpose.”

We recommend consulting with your internal teams or tax advisors to determine eligibility for Washington state sales tax exemptions, as Premera is unable to provide legal or tax advice regarding qualification for this exemption. Self-funded groups will be contacted by their account manager and provided with additional instructions regarding the required form in the coming weeks.