• In 2015, the City moved from a fully insured to a self-insured health benefits program for employees in an effort to reduce rising health care costs. The City goal was to move toward a less costly “unbundled” group of services (TPA, Health network, Stop Loss Insurance).
• The City has continued to be unbundled and staff recommends the City remain so in 2020.
• During 2018, the City went out to bid for Stop Loss coverage. Symetra Life Insurance Company was the selected bidder for Stop Loss coverage.
• In 2019, Symetra again offered favorable and competitive renewal terms for 2020.
• Human Resources is now ready to seek Council approval for the Stop Loss policy for the 2020 policy period.
• Symetra has verified in writing that coverage for the City is effective 1/1/2020.
• Stop loss coverage is required by the State of Washington for the City to maintain its self-insured status.

City staff worked with its broker, Davidson Benefits Planning, to seek stop loss coverage for its self-insured health benefits program. (Stop loss coverage insures against the risk that an individual claim will exceed a specified deductible amount.) Symetra Life Insurance Coverage was the successful bidder and continues to offer competitive renewal terms. Council approval is needed to provide payment on the premium for the policy.

The individual deductible included in the renewed policy is $250,000, as outlined in the attached schedule of benefits for 2020. The City’s self-insurance covers eligible claims below that threshold. The aggregate reimbursement maximum per policy period included in the insurance is $2 million. The stop loss insurance covers prescription coverage as well.

1. Continue reduced costs from fully insured program.
2. Stop Loss protects the City in the event an employee or their dependent’s health costs exceed coverage under our health insurance.