TO: AC Transit Board of Directors
FROM: Salvador Llamas, General Manager/Chief Executive Officer
SUBJECT: Annual Health Plan Renewals
ACTION ITEM
AGENDA PLANNING REQUEST: ?
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to enter into contracts with Kaiser Permanente, Health Net, Vision Service Plan, MetLife Dental and Standard Life Insurance for District employee insurance programs for calendar year 2026.
Staff Contact:
James Arcellana, 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 high-performing employees and retain a healthy workforce.
BUDGETARY/FISCAL IMPACT:
The execution of the health care renewals is anticipated to cost $76,025,441 for calendar year 2026, which is included in the adopted FY 2025-26 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.
Kaiser Permanente
Kaiser Permanente is offering the District a 0.93% increase in active Union and Management employee rates effective January 1, 2026 - December 31, 2026. Kaiser Permanente premiums are provided in Attachment 1.
Health Net
Health Net is offering a 4.76% increase in active Union and Management employee rates, effective January 1, 2026- December 31, 2026. 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