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City staff recommend switching employee medical plan to Kaiser Permanente effective Jan. 1, 2026
Summary
Human Resources and the Benefits & Wellness Committee recommended moving city employee health coverage from Anthem to Kaiser Permanente starting Jan. 1, 2026, citing lower out-of-pocket risk for employees, integrated care, estimated employee savings and a $15,000 wellness sponsorship from Kaiser.
Human Resources presented the benefits-and-wellness committee’s recommendation to transition the city’s primary medical plan to Kaiser Permanente effective Jan. 1, 2026. HR said the recommendation follows two staff surveys (March 2024 and 2025), employee feedback about rising out-of-pocket costs under the current carrier (Anthem) and on-site meetings and a Kaiser facility tour in Morrow.
HR reported that staff considered care integration, cost predictability and wellness support. The presentation said an illustrative employee savings of about $100 per month is possible under Kaiser plan options and that Kaiser guaranteed a $15,000 sponsorship for the benefits-and-wellness program in 2026. HR also said Kaiser offers multiple plan designs, including an HMO, a PPO and a KP+ option, and that employees would have access to virtual care and an app for appointments and prescription refills.
Council members asked about coverage levels and costs to the city. HR said the FY26 budget is being prepared in two versions (current carrier and proposed carrier) and that staff will incorporate any change approved by council when finalizing the budget; the presenter said the change is expected to be cost-neutral or a modest decrease in employer costs, and that staff could use some savings to raise the city’s percentage contribution to premiums if desired. HR said open enrollment is Nov. 1–15 and the recommendation will return to council as a resolution at the next meeting to meet that timeline.
HR noted common employee concerns — provider continuity and transition of care for ongoing treatments — and said Kaiser offers transition-of-care programs and multiple plan tiers so employees with long‑standing providers can choose a plan consistent with their needs. Kaiser representatives Arlene Grant and Gregory Williams were present for questions.
No final vote occurred at the work session; councilors expressed general support and asked staff to include precise FY26 budget numbers and plan-option comparisons when the matter returns as a resolution to the council.
