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Commission approves switch to PEHP for 2026 employee health plan
Summary
After reviewing quotes showing large increases from the incumbent carrier, the King County Commission approved switching to PEHP for 2026 coverage; staff said PEHP's quote would lower per‑family cost compared with the current plan and commissioners approved a small COBRA/dental admin fee increase.
King County commissioners voted unanimously Sept. 30 to change the county’s medical insurance provider for 2026 to PEHP after staff presented competitive quotes and analysis. Tricia Spendlove, chair of the county’s insurance committee, told the commission that Cigna had provided a level‑funded quote that could increase family costs by 25 percent, while PEHP (PHP) offered a lower quote.
"PEHP has come back with a quote of $2,600 per family," Spendlove said, describing the quote as roughly $165 per family less than the county currently pays. Staff said the PEHP quote uses a different prescription formulary (tier structure of 10/25/50 versus the county’s current 10/25/45) and noted coverage differences tied to Rx tiers.
Commissioners asked for comparisons of single, employee‑plus‑spouse and family rates and staff provided enrollment counts (about 84 family subscribers and roughly 102 employees on medical). The benefits administrator also explained that dental and vision remain self‑funded and recommended a modest dental admin‑fee increase of 25¢ per employee per month to align COBRA rates with plan costs; staff said COBRA enrollment is small.
After discussion, the commission moved and accepted staff’s recommendation to switch to PEHP effective Jan. 1, 2026, and to keep New York Life for life insurance with no increase. Staff announced open enrollment would begin Nov. 13 and asked for robust internal communications to reach employees who do not use email regularly.
Staff noted a guarantee from PEHP of a maximum 7.2 percent rate lock for 2027, dependent on utilization. Commissioners framed the decision as balancing cost containment and benefit continuity for county employees.
