TO: AC Transit Board of Directors
FROM: Michael A. Hursh, General Manager
SUBJECT: Annual Health Care Renewal Rates
ACTION ITEM
RECOMMENDED ACTION(S):
Title
Consider authorizing the General Manager to enter into contracts and approve renewal rates for Kaiser Permanente, Health Net, Vision Service Plan, MetLife Dental and Standard Life Insurance.
Body
STRATEGIC IMPORTANCE:
Goal - High-Performing Workforce
Initiative - Employee Recruitment, Training and Retention
Providing comprehensive benefits allows the District to attract and retain employees.
BUDGETARY/FISCAL IMPACT:
The execution of the health care renewals is anticipated to cost $58,848,403, which is included in the proposed FY 2021-2022 operating budget and is a $514,655 decrease from the previous year's cost.
BACKGROUND/RATIONALE:
Kaiser Permanente
Kaiser Permanente is offering the District a 0.28% decrease in active Union and Management employee rates for FY 2021-2022. This is due to a reduction in utilization and claim costs for 2020. Kaiser Permanente premiums are provided in Attachment 1.
Health Net
Health Net is offering the District a 5% decrease in active Union and Management employee rates. This is due to a reduction in utilization and claim costs for 2020. 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 $5.66 per employee. Based on Alliant's Underwriting Department analysis, Alliant recommends that the District maintain current funding rates. MetLife dental premiums are provided in Attachment 3.
Vision Service Plan
The District contracts with Vision Service Plan (VSP) to provide vision benefits. ...
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