Denver Public Schools Considers Dropping Kaiser Permanente After 50-Year Partnership

Dispute over rising healthcare costs and bidding process disrupts coverage for thousands of employees and their families.

Published on Feb. 13, 2026

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Denver Public Schools (DPS) is considering ending its decades-long partnership with Kaiser Permanente Colorado, citing cost concerns. The move has sparked backlash from the teachers' union, which argues the change would disrupt care for around 5,800 DPS employees and their families. The situation escalated after Kaiser alerted employees their coverage would end in July, leading to an investigation into the bidding process and the placement of a DPS administrator on leave.

Why it matters

The DPS-Kaiser dispute highlights the growing financial pressures school districts face in providing affordable healthcare coverage for employees. With rising costs and budget constraints, districts are being forced to make difficult decisions that can significantly impact educators and their families.

The details

DPS leaders are seeking to replace Kaiser Permanente with MotivHealth Insurance Company or UnitedHealthcare, citing cost concerns. The Denver Classroom Teachers Association argues the switch will disrupt care for many DPS employees who value their existing relationships with Kaiser doctors. The situation escalated after Kaiser alerted DPS employees in December that their coverage would end in July, which DPS officials claimed was premature. This led to an outside investigation into the bidding process and the placement of DPS Chief of Talent Edwin Hudson on administrative leave.

  • In December 2025, Kaiser Permanente alerted DPS employees that their coverage would end in July 2026.
  • The DPS Board of Education is scheduled to vote on the health insurance plan next week.

The players

Denver Public Schools (DPS)

The public school district serving the city of Denver, Colorado.

Kaiser Permanente Colorado

A healthcare provider that has partnered with DPS for over 50 years.

MotivHealth Insurance Company

One of the alternative insurance providers being considered by DPS.

UnitedHealthcare

Another alternative insurance provider being considered by DPS.

Rob Gould

President of the Denver Classroom Teachers Association (DCTA).

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What they’re saying

“This is a significant disruption in the system. I'm not really sure why they want to get rid of it other than cost and trying to push us to a lower cost system.”

— Rob Gould, President, Denver Classroom Teachers Association (The Denver Post)

“Canceling Kaiser would force educators to change providers mid-care, disrupt prescriptions and delay critical services. That's not a little inconvenience. It's a real health risk.”

— Tyler Knauer, Educator, East High School (The Denver Post)

What’s next

The DPS Board of Education is scheduled to vote on the health insurance plan next week, but could choose to extend current contracts and restart the bidding process.

The takeaway

The DPS-Kaiser dispute highlights the difficult tradeoffs school districts face in balancing healthcare costs and employee needs. As districts nationwide grapple with rising healthcare expenses and budget constraints, transparent communication and a focus on employee wellness will be crucial in navigating these complex decisions.