The Equal Benefits Program

Alternative Compliance Options for Equal Benefits

Reasonable Measures (Cash Equivalent) Authorization

Section 11 of the Equal Benefits Program Rules allows the City, in limited circumstances to authorize a contractor to provide eligible employees with a cash equivalent payment in lieu of benefits that are unavailable due to circumstances outside of the contractor's control.  The authorization does not relieve the contractor of its obligation to provide all other benefits it offers on an equal basis.

Smaller employers (less than 50 employees) who are not participants in a pooled group insurance plan may find it difficult to add domestic partners to an existing health insurance policy, because very few insurance carriers cover domestic partners at the small group level.

The City evaluates each request for Reasonable Measures Authorization on a case-by-case basis and decisions are based on such factors as:

1. The numbers of benefits providers identified and contacted by the contractor and verified responses from these providers that they will not provide equal benefits coverage;
   
   
2. The existence of benefits providers willing to offer equal benefits coverage to the contractor;
   
   
3. The existence of federal or state laws that preclude the contractor form providing equal benefits.

Contractors must provide the following information when completing the Equivalent/Alternate Measures Authorization form:

1. The names, contact persons, and telephone numbers of benefits providers contacted for the purpose of acquiring equal benefits coverage;
   
   
2. The dates on which such benefits providers were contacted;
   
   
3. Summaries of any written and oral response(s) you received from such benefits providers;
   
   
4. Any other information believed to be relevant to documenting the potential contractor's inability to implement equal benefits.

Substantial Compliance (Implementation Delay) Authorization

Section 12 of the Equal Benefits Program Rules allows the City to authorize a contractor who anticipates not being able to comply with the equal benefits requirement by the date of its contract with the City to enter into the contract in spite of the implementation delay. This authorization is granted when full implementation of equal benefits is delayed by circumstances outside of a contractor’s control.

For example, a city contractor who would like to contract with the City in October 2007 may not be able to make eligibility changes to its health insurance plan until January 1, 2008, the next open enrollment period for that plan. This contractor may apply for Substantial Compliance Authorization, on the grounds of Open Enrollment Delay. If the application is approved, the contractor is cleared to do business with the City, contingent upon its implementation of equal benefits within the timeframe specified.

Once the City approves the application, it monitors the contractor for evidence of successful fulfillment of the terms of authorization and requires complete documentary proof of equal benefits compliance upon expiration of the authorized timeframe for delay. A contractor’s failure to provide equal benefits: 1) within the timeframe allotted under Substantial Compliance Authorization; and 2) to the extent required by its contract with the City, constitutes a material breach of contract.

If you need assistance, call us and we can assist you in determining what changes, if any, will be required under the law.

Apply for Alternative Compliance

If you need assistance completing the on-line application, please call us at (206) 684-0430 or e-mail us at equalbenefits@seattle.gov.

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