County Approves Health Benefits Agreement Affecting Multiple Employee Unions

In a recent meeting of the Metropolitan King County Council, a proposed ordinance aimed at approving a memorandum of agreement (MOA) between King County and the Joint Labor Management Insurance Committee (JLIMIC) was discussed. This agreement is significant as it would extend health benefits and other employee benefits to a wide range of county employees, including those represented by various unions and non-represented employees. However, it notably excludes certain groups, such as members of the Amalgamated Transit Union (ATU) in Metro Transit and specific ranks within the King County Sheriff's Office.

If approved, the MOA would lead to substantial changes in health care coverage costs for both the county and its employees over the next three years. The county's contribution per employee for health care would rise from $1,887 in 2026 to $2,070 by 2028. Employees would also see increases in their monthly premiums across different health plans. For instance, the premium for the Regence PPO plan would increase from $75 to $85, while the Regence Ahn plan would see a jump from $50 to $70. Notably, a new premium of $60 would be introduced for the Kaiser HMO plan, which previously had no monthly cost for employees.

Additionally, the out-of-pocket maximums for various health plans would also rise significantly. For example, the out-of-pocket maximum for the Regence PPO plan would increase from $1,100 to $2,000 for individual coverage, and from $2,500 to $4,500 for family coverage. These changes reflect a broader trend of rising health care costs that could impact employee finances.

The fiscal implications of this MOA are considerable, with an estimated increase in costs of $15.8 million for 2026, $8.8 million for 2027, and $8.3 million for 2028 across all county funds. The general fund alone would see increases of $4.2 million in 2026, $2.6 million in 2027, and a similar amount in 2028. The county executive plans to request the necessary budget appropriations to implement this agreement in the upcoming biennial budget.

This proposed MOA highlights the ongoing challenges of managing employee benefits in a climate of rising health care costs, and its approval could have lasting effects on both the county's budget and the financial well-being of its employees. As discussions continue, stakeholders will be closely monitoring the potential impacts on the workforce and the county's financial health.