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:
Sebron Flenaugh III, Executive Director of Human Resources
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 performing and healthy workforce.
BUDGETARY/FISCAL IMPACT:
The execution of the health care renewals is anticipated to cost $60,383,341. Health care expense is included in the adopted FY 2022-23 operating budget based on existing rates, these new rates will be used to update the budget if necessary via the mid-year adjustment for the remainder of the fiscal year. The new rates will also be used for development of the following FY 2023-24 budget.
BACKGROUND/RATIONALE:
Kaiser Permanente
Kaiser Permanente is offering the District a 4.40% increase in active Union and Management employee rates effective January 1, 2023 - December 31, 2023. Kaiser Permanente premiums are provided in Attachment 1.
Health Net
Health Net is offering the District a 7.90% increase in active Union and Management employee rates effective January 1, 2023 - December 31, 2023. 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 components for a self-funded dental plan: administrative costs, which are fixed and premium funding rates which are set each year depending on average utilization of dental services. The administrative monthly fee will remain the same at...
Click here for full text