Council hears options for medical coverage and stipend amounts for part-time council members

Candace Martinson, Auburn’s director of human resources and risk management, presented options for medical and dental coverage available to council members at the Feb. 10 study session and described costs, eligibility rules and alternative stipend approaches.

Martinson said the city participates in Association of Washington Cities (AWC) medical plans and currently offers a Kaiser plan as the AWC option. “The employee cost is the same as the council member cost for Kaiser. So $853.18 per month for employee only,” she said, adding that the employee-plus-spouse premium would total $1,692.18 per month. She also provided dental premium figures: $53.82 per month for employee only and $48.38 for a spouse (total $102.20).

Martinson explained that AWC participation requires at least 50% enrollment among council members (four of seven) to offer medical coverage; dental requires 75% (six of seven); life insurance would require 100% participation. She also noted that the city’s brokered Premera plan for full-time employees is not available to council members because councilors do not meet the full-time underwriting threshold.

As an alternative to offering city coverage, Martinson described stipend programs used in peer cities. Examples she provided: Kirkland ($470 per month stipend), Federal Way ($494 per month) and Burien ($750 per month). She said some cities (Kent, Renton) are self-insured and enroll council members with varying dependent-cost shares; Kent’s reported council cost was $50–$57 per month depending on plan choice. Martinson recommended additional research into options, including the state exchange and Medicare supplement options for councilors on Medicare.

Council members asked about budget and legal implications. Council member Tracy Taylor asked whether the council’s balanced budget for 2025 assumed these costs and whether the city would implement medical coverage in 2025 or 2026; Martinson said the cost is not currently budgeted and that legal questions remain about whether employer-paid insurance would be treated as additional compensation while a stipend would be direct compensation. Council member Baldwin urged continuing research to avoid creating a barrier to service for residents who do not have employer coverage. Mayor Backus and other members noted concerns about thresholds and the administrative implications if participation fell below AWC required levels; Martinson said if fewer than four council members participated in the AWC Kaiser plan the group could lose eligibility and those remaining might have COBRA/self-pay options.

Council directed staff to continue research, including surveying additional peer cities, checking PERS implications and reaching out to AWC for details, and to return with findings by email or future committee discussion. No formal council vote was taken during the study session.