Press Release - Division of Insurance & Kaiser
OFFICE OF GOV. BILL RITTER, JR.
FOR IMMEDIATE RELEASE
TUESDAY, JUNE 24, 2008
CONTACTS:
Karen Gerwitz, DORA Director of Communications, 303.894.2338
Amy Smith, Kaiser Permanente Colorado, 303.746.1632
COLORADO & KAISER PERMANENTE ENTER $155M AGREEMENT
Gov. Bill Ritter today announced an agreement by Commissioner of Insurance Marcy Morrison and Kaiser Permanente Colorado President Donna Lynne, pursuant to which Kaiser Permanente Colorado will provide $155 million in Colorado financial relief over the next two years, as well as taking two other steps that will also benefit Colorado consumers.
The financial relief will be in the form of premium credits or enhanced benefits to employers and individual customers of Kaiser Permanente Colorado. Kaiser Permanente Colorado has also agreed that a portion of this relief will be dedicated to the expansion of its Medical Financial Assistance Fund by $5 million during the same period to support the health care needs of lower income Kaiser Permanente members in Colorado.
The $155 million in financial relief will be applied to individual and employer consumers who purchase health care coverage from the Kaiser Foundation Health Plan of Colorado. The relief will amount to $77.5 million per year in both 2009 and 2010. This $155 million will be distributed in the following ways:
- A one-time average credit of $287 will be applied for each individual subscriber of Kaiser Permanente Individual and Family Plans in both 2009 and 2010.
- Employers will receive a one-time average credit of $287 for each enrolled employee in both 2009 and 2010. Employers will have the option to retain the premium credit themselves, pass it along to their employees, or enhance benefits.
- Kaiser Permanente’s Medical Financial Assistance Program will be expanded by an additional $2.5 million per year in 2009 and 2010 to provide co-pay or cost-sharing assistance, based on financial need.
Second, Kaiser Permanente Colorado will continue its expansion bringing its integrated health care delivery system to more Colorado communities.
"In the past four years, Kaiser Permanente Colorado has built three new medical office buildings and expanded the number of hospitals available to serve Kaiser Permanente members," said Donna Lynne. "In January 2009, Kaiser Permanente Colorado will expand its services into Southern Colorado, and by the end of 2009, it will add two new medical office buildings as well as several more by 2012."
In addition to the above steps, Kaiser Permanente Colorado will maintain appropriate reserves by increasing investments held in its own accounts and reducing the balance held by its California affiliate.
The agreement with Kaiser Permanente Colorado originated from the April 2007 Division of Insurance's Financial Examination, covering Kaiser Permanente Colorado's 2001-2005 financial statements. At the time, Commissioner Morrison was concerned about Kaiser Permanente Colorado's increasing net worth reaching several hundred million dollars, and directed the Division and Kaiser Permanente to begin discussions that ultimately led to this agreement.
Gov. Ritter applauded Commissioner Morrison and Kaiser Permanente Colorado's Lynne for their diligent work in reaching this historic agreement. "Kaiser Permanente is an important provider of health care services in our state," Gov. Ritter said. "I am pleased that we were able to work together to develop this approach that will benefit thousands of Coloradans."
Commissioner Morrison added, "I am pleased with our agreement, and I look forward to Kaiser Permanente Colorado expanding health care services to support Colorado."
Kaiser Permanente Colorado, an integrated health care delivery system, provides health care services and benefit coverage for more than 480,000 members in Denver, Boulder and Colorado Springs.
The Division of Insurance of the Colorado Department of Regulatory Agencies monitors the financial health and solvency of all insurance companies in Colorado so that when consumers need insurance most, such as during a catastrophic injury or illness, they can count on it being available.
"This type of benefit to consumers is core to our mission of consumer protection," said Rico Munn, executive director of the Colorado Department of Regulatory Agencies.
To view the agreement, visit the Division of Insurance's website at the following address:
http://www.dora.state.co.us/insurance/pr/pr.htm.
DORA is dedicated to preserving the integrity of the marketplace and is committed to promoting a fair and competitive business environment in Colorado. Consumer protection is our mission.
Kaiser Permanente exists to provide high-quality, affordable health care services to improve the health of our members and the communities we serve.