TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager/Chief Executive Officer
SUBJECT: Annual Health Care Renewal Rates
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to enter into contracts and approve annual renewal rates for Kaiser Permanente, Health Net, Vision Service Plan, MetLife Dental and Standard Life Insurance.
Staff Contact:
Michael A. Hursh, General Manager/Chief Executive Officer
Body
STRATEGIC IMPORTANCE:
Goal - High-Performing Workforce
Initiative - Employee Recruitment, Training and Retention
Providing comprehensive benefits allows the District to attract and retain a high preforming and healthy workforce.
BUDGETARY/FISCAL IMPACT:
The execution of the health care renewals is anticipated to cost $72,245,114 which is included in the adopted FY 2024-25 operating budget.
BACKGROUND/RATIONALE:
The annual health care renewal provides premium changes for medical, dental, vision and life insurance plans. Premium increases or decreases are based on employees' utilization and cost of claims for these plans. In some cases, the District will receive a rate pass, which means no change to the current premium and a rate guarantee which maintains the current premiums for a period of time.
Kaiser Permanente
Kaiser Permanente is offering the District a 7.29% increase in active Union and Management employee rates effective January 1, 2025 - December 31, 2025. Kaiser Permanente premiums are provided in Attachment 1.
Health Net
Health Net initially offered a 9.87% increase in active Union and Management employee rates, however, Alliant, the District's Employee Benefits Brokerage Firm, negotiated the increase to 6.0% effective January 1, 2025- December 31, 2025. Health Net premiums are provided in Attachment 2.
MetLife Dental
The District is currently self-funded for the MetLife Preferred Provider Organization (PPO) Plan. There are two renewal compone...
Click here for full text