Fire department considers self-insurance to save money

South King Fire and Rescue is looking at self insurance for medical benefits as a way to save money.

Over the past year, the fire department's medical insurance costs have increased dramatically, and are expected to increase another 15 percent next year.

The Board of Commissioners approved a measure that would begin a plan to change to a self-insured medical program.

The resolution allows the department to send a proposal to the state level. The state risk manager would then determine if the plan was even feasible, and if so, the plan could come back to the board for a decision.

Chief Financial Officer David Lawson said the move would save at least $200,000 next year, in addition to no further increases.

Although the approval of the resolution eventually passed unanimously, there was plenty of discussion among the commissioners prior to that approval.

Commissioner Mark Freitas had some reservations about the resolution.

"It's been our policy to buy policy, not self insurance," Freitas said. "My concerns are probably founded in my lack of knowledge. I have concerns that we're passing a resolution that doesn't mean anything."

However, Commissioner Bill Gates said the board has plenty of examples to examine for self insurance.

"It's not as if it hasn't been done by many, many fire departments," Gates said.

Staff, however, was very much in favor of at least looking into the option.

"It really begs to be studied," Lawson said. "It could save us a great deal of money. The state is the best to evaluate this. I think we need to do this."

SKFR employs 160 employees. Eligible employees and their dependents would qualify for the self-insured medical plan.

Contact Federal Way Mirror Reporter Kyra Low at klow@fedwaymirror.com or (253) 925-5565.

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