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 $67,393,487 for calendar year 2024 based on current staffing levels. Healthcare costs are a standard and significant part of the operating budget. The vendors' increases are higher than budget staff estimated for the remainder of the current fiscal year and will be incorporated into the mid-year budget adjustment, which will come to the Board in early February 2024. The rates will also be incorporated into the FY 2024-25 budget process.
BACKGROUND/RATIONALE:
Kaiser Permanente
Kaiser Permanente is offering the District a 13.14% increase in active Union and Management employee rates effective January 1, 2024 - December 31, 2024. Kaiser Permanente premiums are provided in Attachment 1.
Health Net
Health Net initially offered an 11.48% increase in active Union and Management employee rates, however, Alliant Insurance Company negotiated the increase to 8.48% effective January 1, 2024- December 31, 2024. 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 cos...
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