RESOLUTION NO.3636

A RESOLUTION  of the Port Commission of the Port of Seattle
adopting an individual self-funded health insurance
program for Port of Seattle employees and retirees.
WHEREAS, The Port of Seattle has historically provided medical and dental benefits for
its employees and retirees; and

WHEREAS, in order to save public resources and contain health care costs, many public
entities in Washington state self-insure medical and dental benefits for employees;
WHEREAS, any program involving self-insuring medical and dental benefits is intended
to reduce the cost of delivering the Port's chosen level of medical and dental benefits, rather
than as a mechanism to reduce employee benefits; and
WHEREAS, RCW 48.62.031 provides a process for public entities like the Port of Seattle
to self-insure its medical and dental benefits; and
WHEREAS, the Port of Seattle is a good candidate to self-insure its medical and dental
benefits on a sustainable basis; and
WHEREAS, the Port will cover projected claim costs and will purchase stop loss and
aggregate stop loss insurance to cover unanticipated losses due to a single large claim or multiple
large claims;

NOW, THEREFORE, BE IT RESOLVED by the Port Commission of the Port of Seattle
that:

Section 1.   The Port of Seattle shall adopt a self-funded health insurance program for
medical, dental, vision, and prescription drug benefits pursuant to Chapter 82-65 WAC. This

program shall: 1) establish program reserves, 2) maintain an aggregate stop loss insurance
policy, and 3) establish an additional contingency reserve. Reserves and stop loss insurance shall
be established and maintained consistent with Chapter 82-65 WAC of at least eight weeks of
program expenses, or an amount approved by the state risk manager, or an amount that is
consistent with state law. During the first year of the existence of this program, these reserves
shall be established pursuant to the initial plan reviewed and approved by the state risk manager.

Section 2.   The Chief Executive Officer is authorized to take all steps required and
execute all documents necessary to adopt, implement, and manage a self-insured health plan for
the Port of Seattle.

ADOPTED by the Port Commission of the Port of Seattle at a regular meeting thereof,
held this        day of                , 2010, and duly authenticated in open
session by the signatures of the Commissioners voting in favor thereof and the seal of the
Commission.

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Port Commission