For more than five decades, Kaiser Permanente has been the primary health care provider for Denver Public Schools employees. But now Kaiser Permanente says DPS plans to end the long-running partnership.

In a statement to CBS News Colorado on Tuesday, DPS stated the following:

“This past fall, Denver Public Schools followed our request for proposal (RFP) process for medical benefits that will be offered to DPS employees for the next fiscal year. The scoring was based on general quality and adequacy of response, demonstrated expertise, service and support, innovation, technology, and cost. At the end of the process of comparing all of the proposals, Kaiser Permanente was not selected as one of the options to present to our employees.”

The plan means more than 5,000 teachers and staff have to find new doctors. That includes Robert Gould, president of the Denver Classroom Teachers Association.

“I think Kaiser has done an amazing job, personally, of our health care. I mean, you know, we have connections with our doctors,” Gould said.

Kaiser first sent a letter to members saying the district intends to end coverage starting in July. The district then sent its own letter in December, saying Kaiser sent that prematurely and that a decision had not yet been made.

Gould applauds Kaiser for notifying employees.

“Thank goodness Kaiser sent something out, otherwise we wouldn’t have known anything about it,” said Gould.

The Kaiser letter claims Denver Public Schools rejected what the provider called a competitive renewal proposal and says the plan would have saved the district millions of dollars.

DPS says Kaiser finished last in its proposal review process and that choosing Kaiser would triple health care costs for employees.

In a statement to CBS Colorado, Kaiser Permanente said in part:

“Our renewal proposal was highly competitive, offering millions of dollars in cost savings while maintaining a robust benefit plan, and the trusted care our members rely on.”

“While we don’t know what the discussions were within the Evaluation Committee, we are very concerned about suggestions that health care costs would have increased three times the current levels under Kaiser Permanente’s proposal. That is not accurate and not supported by the contents of our submitted proposals. In fact, we are concerned that there was either an error or a misunderstanding of what was communicated to the DPS Evaluation Committee about our proposals. This has material consequences for the 5,800 Kaiser Permanente members who, if the contract award proceeds as currently recommended, will have to search for new doctors. We would very much welcome the opportunity to discuss this with district leadership.”

Gould says the uncertainty is already emotional for many educators.

“A lot of our members, a lot of our colleagues, have been devastated by this, because they have had such a long relationship with Kaiser, with their doctors. People are devastated. Some are in cancer treatment, some have long-term doctors and we still haven’t seen the actual cost data DPS is using.”

Union leaders say costs are already rising, with some employees paying nearly $200 for visits. They’re demanding proof behind the cost claims by DPS and a voice in the decision-making process.

“If the employees and everybody agrees to the fact that, no, this is too expensive, we shouldn’t continue with it, you know, then that’s up to that group. But that group isn’t even being given the opportunity to really see … what’s behind the numbers? What’s behind the claims that DPS is making?”

CBS Colorado reached out to other school districts. Cherry Creek Schools says it left Kaiser two years ago due to higher costs. Jeffco Public Schools says it is still with the provider.

A DPS benefits board meeting is scheduled for Monday, January 12. Union leaders are asking for full RFP documents and cost breakdowns before a February deadline.

MotivHealth, one of the providers DPS may move to, says it can’t publicly comment because the procurement process isn’t finished, but says it continues to “outdeliver competitors while lowering costs.”

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