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stored only on thermal paper
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Mary Ann Barnes
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Permanente CEO
Kaiser Permanente profits
Kaiser Permanente to spend $50 million+ on newest
Thrive campaign, little on print
September 19, 2011
Chris Rauber
San Francisco Business Times

Kaiser Permanente    is gearing up for its eighth season of its ubiquitous Thrive ads,
spending roughly $50 million to $52 million this time around, much of it on broadcast
media and a growing chunk for newer venues like streaming media.

Lisa Ryan, Oakland-based Kaiser’s senior director of national advertising, told the San
Francisco Business Times that Kaiser will devote about 65 percent of its Thrive
advertising budget to broadcast, 20 percent to transit ads, billboards and the like, 10
percent to 12 percent to digital, including online banners, streaming and gaming, and 5
percent to print magazines.

That’s the corporate allocation breakdown, “which may vary slightly by region,” Ryan
said in a Sept. 19 interview.

The budget will stay where it’s been for years, in the $50 million range, but may jump up
a bit, to as much as $52 million, as the Ohio region returns to the Thrive campaign. “We’
re thrilled to be staying at that expenditure level” in tough economic times, Ryan said.

For previous background, see this Business Times story on the Thrive re-launch last

The new ads will run in the Bay Area and elsewhere in California; Hawaii; Portland, Ore.;
Denver; Atlanta; the District of Columbia, and part of Maryland and Virginia, and will start
up again in parts of Ohio, where they had earlier been discontinued when that region
focused intensively on sponsorship-related marketing.
Kaiser Permanente
gets big profits by
cutting costs: are
patients harmed?
Nonprofits' tax
State probes Kaiser,
By Kathy Robertson
Sacramento Business
Dec. 18, 2005

The state is investigating
15 nonprofit healthcare
organizations for excess
profits, as legislators
question whether they
deserve to keep the
tax-exempt status that
saves them millions of
dollars a year.

The list includes Kaiser
Foundation Hospitals,
which potentially
means closer scrutiny
of the
healthcare giant's 30
California hospitals,
even though
a legislative
hearing on the
matter in Oakland
last week put the
heat on
Sutter Health

Sutter is affiliated with
nine of the names on the
list -- although it sold one
of them, a hospital, in
2001 -- and was slammed
by the Service Employees
International Union and
others at the politically
charged hearing. That's
not a coincidence. SEIU
has tried to organize
Sutter's employees for
years, with little success.
Kaiser is a longtime friend
to labor and signed a
landmark, five-year
contract with 29 unions,
including SEIU, in

The Assembly Revenue
and Taxation Committee
called the hearing to
consider the tax benefits
granted to nonprofit
hospitals in California,
whether hospitals are
giving back enough in
exchange, and if not, what
to do about it.

There's no bright line
in California law that
specifies how much
profit a nonprofit
hospital can earn.

State law says groups that
own and operate hospitals
aren't considered
for-profit if operating
income in the proceeding
year exceeds expenses
by 10 percent, but there
are exceptions. Hospitals
can use the extra money
to pay debt, expand their
facilities or put money
aside for contingencies
without jeopardizing
nonprofit status.

"Question is: What is the
acceptable threshold?"
said Assemblyman Johan
Klehs, a Hayward
Democrat who chairs the

Legislators have the
authority, under the
California Constitution,
exempt properties
from taxes if they are
owned by nonprofits
and used for religious,
hospital or charitable

About 200 healthcare
organizations in the state
qualify for the "welfare
They claim
exemptions for about
1,000 hospital
properties they own
The board
identified 15 out of the
200 organizations it
oversees as having profits
of more than 10 percent
in 2004...State law does
not have a minimum
standard for charity care
for hospitals, Shedd said.

All Kaiser hospitals are
clumped into one entry,
but most Sutter
affiliates are cited
separately. The list
includes Sutter Health
at Work, a subsidiary
Sutter says lost money
last year and is being
shut for lack of
business. Also on the
list is Sutter Merced
Medical Center, sold
four years ago to
Catholic Healthcare

Selective spotlight

Kaiser was not on the
hot seat at the hearing
even though the
amount of charity care
its 30 California
hospitals provides is a
third of what Sutter's 26
hospital does.

In 2004, Kaiser
provided $50.5 million
in charity care at its
California hospitals.
Sutter provided
million and CHW did $63
million, according to
figures the individual
health systems provided
the Business Journal in

Kaiser is both a health
plan and healthcare
system and mostly treats
its own members in its
hospitals, and thus does
very little direct charity

Yet SEIU policy director
Fred Seavey blasted
Sutter for inadequate
levels of charity care, high
prices and high executive
State Senate health chairman doing business with Kaiser
A firm owned by Sen. Ed Hernandez, who derailed legislation opposed by the
nonprofit health group, leases office space to Kaiser Permanente. An advocacy
group seeks his ouster from the chairmanship.
By Patrick McGreevy
Los Angeles Times
September 18, 2011

A Southern California lawmaker who helped defeat legislation opposed by Kaiser
is benefiting from a business relationship with the nonprofit health group.

The proposal, which died in the Legislature earlier this month after a dispute
over its provisions, would have required state approval for health insurers
including Kaiser to raise their rates.

State Sen. Ed Hernandez (D-West Covina), chairman of the Senate Health Committee,
owns a corporation that leases an office building to Kaiser Permanente in Baldwin Park.
Since 2006, Kaiser has paid Hernandez's firm about $387,000 to lease the
The current rent is $5,752 a month.

Most elected officials in California are disqualified from actions that could affect
a source of their income, but state legislators exempted themselves from that
restriction in 2002. Such dual interests amount to "what a common-sense person
would consider to be wrong," said Kathay Feng, executive director of California
Common Cause...

Because his role as Health Committee chairman gives Hernandez considerable
power over many bills that affect the health industry
, a consumer advocacy
group has asked Senate leader Darrell Steinberg (D-Sacramento) to remove him.

"This level of income from a company that is constantly before his committee, and whose
interests touch upon every level of the committee's work … compromises Senator
Hernandez's ability to independently chair the committee," wrote Jamie Court, president of
the nonprofit group Consumer Watchdog.

Kaiser's payments were disclosed in Hernandez's annual financial interest report on file
with the state.
But there was no mention of the business relationship when a
Kaiser representative appeared at a June committee hearing presided over by

Hernandez voted for the bill when it passed his committee. But he said he would oppose it
on the Senate floor unless it was changed so a panel of actuaries, rather than California's
elected insurance commissioner and the director of the state's Managed Health Care
Department, would rule on any rate increases.

The bill's author, Assemblyman Mike Feuer (D-Los Angeles), said such revisions
would have left consumers unprotected from excessive rate hikes
and, without
enough votes to support his version, he shelved the legislation, AB 52...
Kaiser doesn't leave all the monitoring of the Internet to its vigilant robots:
How Kaiser Permanente uses social media for customer
By Andy Sernovitz on September 23, 2011
SmartBlog on Social Media

With 167,000 employees, 35 medical centers and more than 8.7 million health plan
members, Kaiser Permanente is one of the largest managed care organizations in the
world. And like many big brands in the health care industry, it faces social media
challenges with rules, regulations and employee training.

But despite the hurdles, it has seen a dramatic growth in positive brand mentions since
2005 — and a big part of that has been the company’s development of a social media
program that involves a lot of outreach from employees throughout the organization.

In his BlogWell presentation, Kaiser Permanente’s Vince Golla walked us through how
they’ve built their program and what they’re doing to grow it. A few key takeaways:

Put social in the hands of more than the PR and marketing
More than the folks you expect to represent a brand in social media, Golla and
his team have gotten thought leaders like physicians, dermatologists and even IT
professionals involved in outreach.

Make sure employees are ready for real engagement. Before you
can participate in social media at Kaiser Permanente, the company makes sure you’re 1)
Ready to talk about the good and the bad; 2) Willing to engage in direct 1:1
conversations; 3) Ready for the world to view those conversations; and 4) Willing to show
that your organization can change or adapt based on these interactions.

Robots can’t do all your monitoring. Golla explained that while the
company’s automated tools for monitoring do great work, it’s the
company’s 220 employees on Twitter who are doing the best job at reading
sentiment and identifying potential issues before they become bigger
Kaiser public relations
Kaiser Permanente’s Q3 takes hit from Wall Street woes
San Francisco Business Times
by Chris Rauber
November 4, 2011
Kathy Lancaster

Kaiser Permanente’s nonprofit hospital and health plan units said Nov. 4 that their third-
quarter profit took a gigantic hit due to non-operating losses, such as Wall Street

The Oakland-based health care giant had a net third-quarter loss of $45 million after
posting a $634 million profit a year earlier – a nearly $680 million swing due primarily to a
$365 million non-operating loss for the quarter.

Its Kaiser Foundation Hospitals, Kaiser Foundation Health Plan Inc.    and subsidiaries
saw revenue jump 7.2 percent to $11.9 billion from $11.1 billion a year earlier, and
operating income dipped much less dramatically, to $320 million from $366 million in 2010’
s third quarter.

But non-operating income for Q3 fell off a cliff. Kaiser posted $268 million in profits last
time around, and lost $365 million for the same period this year.

The year's first six months "were pretty darn strong," in terms of investment returns, Tom
Meier, Kaiser's senior vice president and corporate treasurer, told the San Francisco
Business Times on Friday afternoon, but the third quarter was tough.

That said, Meier noted that Kaiser's investments didn't decline as steeply as the overall
S&P or Dow Jones' averages, and that Wall Street had a strong October. That month's
results, however, were too late to bolster the third-quarter tallies.

For the first nine months, the net income decline wasn’t nearly as stark, but Kaiser’s nine-
month profit fell 11.8 percent or roughly $200 million, from $1.7 billion in the first three
quarters of last year to $1.5 billion this year.

And nine-month non-operating income took a steep fall, from $584 million in 2010 to just
$199 million this year.

Operating revenue for the first nine months clocked in at $35.8 billion, up 8 percent from
$33.1 billion a year earlier; operating income for the same period increased at about the
same rate to $1.3 billion from $1.2 billion in 2010.

Neither Kathy Lancaster, Kaiser's executive vice president and CFO, nor Chairman and
CEO George Halvorson directly commented on the huge reversals on investment income
so far this year. Lancaster said in the statement that Kaiser's financial performance "has
allowed us to make the appropriate investments in our facilities and technology
infrastructure" needed by enrollees now and in the future.

All financial numbers from Kaiser’s hospital and health plan units are approximate, since
the company shares only partial financial results, which it summarizes in a press release.
Additional financial detail is not made available to the press or public.

On the brighter side, enrollment year-to-date is up by 217,000 to roughly 8.9 million,
Kaiser said. Those members come from nine states and the District of Columbia, but
roughly three-quarters of them reside in the Golden State.

Kaiser's non-profit health plan, hospitals and subsidiaries report their financial results
quarterly, in truncated form.
Its for-profit medical groups do not.
Avivia Health is the only organization powered by the knowledge gained from Kaiser
Permanente's 65+ years of population care management
with a comprehensive
solution that includes data analytics, outreach, specially trained health coaches, and
decision aids to empower individuals to more effectively manage their health care needs –
all of which are
proven to cut down on patient health care costs.  Avivia Health's
workforce health solutions help control health care costs
, improve productivity and
give employees the resources they need to move toward a better path to life.

Avivia Health Continues Its Growth in U.S.
Announces Corporate Promotions
PR Newswire
ATLANTA, Nov. 4, 2011

Buoyed by recent growth and a reputation in the industry as one of the most progressive
wellness and condition management firms in the U.S., Avivia Health announces key
corporate promotions and is poised for an even stronger 2012.

Avivia Health From Kaiser Permanente has announced the promotion of Marsha Masten,
RN as Vice President, Client Services; Jonathan Shimp as Vice President Sales; and
Steve Hastings as Area Vice President Sales for the West Region.

"Avivia has already expanded its Client Services Department by 25 percent this year,
including a dedicated implementation specialist," says
Chris Stenzel, Chief
Executive Officer of Avivia Health
. "We have signed on clients who
represent the full suite of our services featuring our Your Health Center portal, in-depth
coaching, health risk assessment (HRA), condition and lifestyle management, case
management, maternity management, incentives programs, on-site screening services
and group physical activity programs. Each of these world-class services are delivered to
our clients through a creative, consultative and collaborative approach," Stenzel says.

[Marsha] Masten is a registered nurse and a healthcare executive with over 25 years of
clinical expertise. Prior to joining Avivia Health, Masten worked for several health and
wellness organizations and gained valuable experience in Operations, Client Services,
Sales, and Internal Consulting.

Jon Shimp has been promoted to Avivia Health Vice President Sales. Formerly, Shimp
was Area Vice President for the West Region. Prior to his positions with Avivia Health,
Shimp worked at Illinois-based Hewitt & Associates. While there, he held the post of
Reporting & Analytics Solutions Sales Executive. Previous experience includes sales and
account management roles with Motorola and Merrill Lynch.

Steve Hastings, formerly Manager of Sales Operations and Proposal Development for
Avivia, has been promoted to serve as the company's Area Vice President Sales for the
West Region. Before he joined Avivia Health, Hastings worked as a Sales Proposal
Consultant for Hewitt Associates where he provided health and welfare services offerings
to some of the company's largest employers.

"With Jon heading up Avivia's corporate sales strategy, coupled with the strength of
Steve's increased responsibilities and Marsha's dedicated implementation process and
commitment to an unparalleled Client Services program, Avivia is poised to grow its key
consultant relationships and client base in 2012," adds Stenzel.

Avivia Health is the only organization powered by the knowledge gained from Kaiser
Permanente's 65+ years of population care management with a comprehensive solution
that includes data analytics, outreach, specially trained health coaches, and decision aids
to empower individuals to more effectively manage their health care needs – all of which
are proven to cut down on patient health care costs.

Avivia Health's workforce health solutions help control health care costs, improve
productivity and give employees the resources they need to move toward a better path to
Kaiser Permanente Breast
Cancer Foundation
Alight Selected to Speak on Planning Maturity Curve at
ASMI and CFO Events in 2012
November 29, 2011
PR Web
Placerville, CA (PRWEB)

Alight LLC, developers of the industry-leading Alight Planning financial planning and
reporting software, today announced that Rand Heer, an industry spokesperson for
budgeting and enterprise planning solutions and Alight CEO, will keynote multiple rolling
forecast trainings and workshops detailing how companies can quadruple the ROI of
financial planning and analysis.

“I am pleased by the positive reception of the Planning Maturity Curve that we introduced
earlier in 2011. The market is seeing a massive shift from software solutions designed
only to streamline the annual budget and save time with automated reports to a sharp
focus on continuous planning and rolling forecasts. The Planning Maturity Curve helps
you measure the ROI of planning activities and in almost all cases, we conclude that the
action and excitement right now is in agile planning which is characterized by driver-based
planning, integrated actuals, and scenario analysis,” Heer said. “The presentation takes
the materials I developed last year to the next level and retains its educational focus on
the core processes required to make planning a value-add activity. Most importantly, we’
re seeing that by leveraging driver-based planning and integrating actuals at the right
level of detail into the financial plan, it can be easy to implement agile planning and
introduce best practices such as a rolling forecast.”

Earlier in 2011, CFO Magazine invited Rand to lead a workshop on the Planning Maturity
Curve as part of CPMT3 Tactics…Tools…Technology slated for January 31st 1:00 – 4:
30pm at the Grand Hyatt New York. It will be the first opportunity to see Rand present in
2012 and is also the debut Planning Maturity Curve presentation at a CFO Magazine
event. The material resonates with companies of all sizes and is gaining traction with
larger organizations including Siemens and PerkinElmer. Rand will also keynote ASMI
Rolling Forecast Trainings in San Diego and Washington DC. In addition, Ben Lamorte,
VP Marketing & Sales, will speak at ASMI events in Dallas and Boston.

Earlier this month, Mr. Lamorte was selected as an ASMI Senior Fellow. “I am always
grateful for an honor and thank the ASMI for the recognition; however, it is the quality of
the finance professionals who attend the ASMI events that make the interactive
presentations so valuable. Building off another successful ASMI event in San Diego
earlier this spring,
Alight is pleased to be the lead sponsor for budgeting and
forecasting events in 2012,” says Lamorte, who first presented at ASMI with
Larry Van Kuran of Kaiser Permanente on the topic of driver-based planning
back in 2008
. Lamorte will employ current forecasting theory and best practices to reflect
on how organizations can quickly move across the Planning Maturity Curve and quadruple
the ROI of Financial Planning and Analysis.
Sell Hospital Indemnity Plans and earn an easy extra $200/sale

“ASMI is pleased to partner with Alight Planning for our cornerstone Budgeting and
Forecasting Summits and Rolling Forecast trainings” remarks Maria Cvitkovic, Director of
Education with ASMI, “Ben and Rand both bring tremendous value to our audience, and
their Planning Maturity Curve takes scenario analysis and agile planning to the crucial
next level.”...

About ASMI
In this challenging economic landscape, organizations must develop and
execute innovative strategies to survive and thrive. Performance and process
improvement methodologies give managers the tools they need to run leaner,
more efficient businesses.
The mission of the American Strategic Management
Institute (ASMI) is to connect business leaders with best-in-class practices and training to
address management challenges and improve results. ASMI has grown into one of the
nation’s most innovative training providers, combining market research and industry
insight to deliver experiences and tools to inspire leaders and grow businesses. Through
virtual sessions, national summits, training programs and consulting services, ASMI brings
together leaders to share insights, ideas and actions to transform organizations.

About Alight LLC
Alight LLC’s Alight Planning is a true driver-based financial planning and reporting
software package that automates complex business modeling for more accurate strategic
plans, revenue projections, budgets and rolling forecasts. Its unique architectures and
easy-to-use interfaces provide finance staff the power they need to build complex driver-
based planning models, while delivering traditional budgeting and planning structures
such as line item detail, integrated financial statements and multiple-user security. Cost-
effective and IT-independent, Alight Planning is affordable and easily deployed by
Fortune 500 business units, as well as midmarket companies with limited IT resources.

Alight has over 250 customers including Kaiser Permanente,
Pennsylvania State
University, British Telecommunications, Pittsburgh Mercy Health, the Swan and Dolphin
Resort at Disney World and Verizon Wireless.
February 24, 1999
KAISER PERMANENTE: CalPERS Audit Finds Errors in Rate Formula
California Healthline

A "new and unprecedented" audit of Kaiser Permanente by CalPERS has found
"inconsistencies, inaccuracies and errors" in the HMO's calculations to determine this year's
rate increase. The audit, which CalPERS won in exchange for a 10.75% increase from
Kaiser, found the HMO excluded "one-time costs from its premium-rate proposals, yet
included one-time costs of $35 million in its calculations for determining it 1999 premium-rate
increase." In addition, the Wall Street Journal/California Edition reports, the HMO's original
request for the increase claimed 2% was due to capitol expenditures while "supporting
documentation" shows the actual amount was 2.5%, a difference of $50 million. But while the
audit found "math mistakes" in both Kaiser's and CalPERS favor, CalPERS spokesperson
Patricia Macht said there were "no major mistakes" indicating the premium increase sought
by Kaiser should have been "dramatically altered." Still, "Kaiser is not off the hook,"
according to Macht, who said, "We're going to hold their feet to the fire and probe and
question and analyze where appropriate." Kaiser does not "dispute the bulk" of the findings,
but says errors arose because it had to "forecast revenue and expenditures" so far in
advance -- in winter or early spring for the following January.

Who's Next
The Journal reports that Kaiser's audit could be a bellwether for other HMOs opening up
their books. CalPERS Health Benefits Administrator Margaret Stanley said her organization
will likely ask "at least one and maybe more" HMOs to undergo an audit and "will consider
negotiating 'audit clauses' into future contracts." The San Francisco-based Pacific Business
Group on Health, another large California purchaser of health insurance, said it may audit
HMOs jointly with CalPERS. PBGH CEO Patricia Powers said "we would like better
information," acknowledging that audits of all the HMOs with which her group contracts are
"up for discussion." The Journal reports that the next "likely candidates" are Health Net and
PacifiCare of California, as they comprise a large chuck of both CalPERS' and PBGH's
business (Benson, 2/24).
Where do Kaiser profits go?  Kaiser doctors (and pharmaceutical companies) rate up there
with oil companies in retirement account health.

BrightScope Announces Its Third Annual Year-End Top 30
401k Plans List
December 20, 2011
Dec 20, 2011

BrightScope (, the leading provider of independent retirement plan ratings and
investment research, is proud to announce the third annual BrightScope Year-End Top 30 Ratings List
covering 401k plans with more than $1 billion in assets. BrightScope obtains an increasing amount of its
data directly from plan sponsors and recordkeepers, and augments these primary sources with data from
publicly available sources such as the Department of Labor and the Securities and Exchange
Commission. By analyzing and interpreting this data, BrightScope provides unprecedented transparency
into the 401k industry...

"There is no doubt that access to better evaluation tools and information on retirement plans has had a
positive effect on the overall quality of plans available to employees," said Mike Alfred, CEO and
co-founder of BrightScope. "The average rating of the plans on this year's Top 30 List increased more
than 75 basis points over 2010. This tells us that plan sponsors are using data more effectively,
conducting better due diligence, and making superior overall decisions. Ultimately these improvements
will lead to a more financially secure future for American workers."

Noteworthy findings in the 2011 Year-End Top 30 401k Plans List include:

--  ...The Google Inc. 401k Savings Plan makes its first appearance on the
BrightScope Year-End Top 30 401k Plans List, coming in at No. 19.
--  The IBM 401k Plus Plan, often recognized as the gold standard for
prudent plan management, slips ten slots to No. 22.

The entire list of the Top 30 401k Plans with more than $1 billion in assets:

2011  2010                                             U.S.     BrightScope
Rank  Rank Plan Name                               Headquarters  Rating(TM)
1     3   Southwest Airlines Pilots' Retirement    Dallas, TX     90.83   
Savings Plan
2     1   The Savings Plan of Saudi Arabian Oil   Houston, TX     90.82   
3    N/A  Wellington Retirement and Pension Plan   Boston, MA     90.13
4    N/A  Deloitte Profit Sharing Plan            New York, NY    89.91
5     5   United Airlines Pilot Directed Account  Chicago, IL     89.11   
6     4   Amgen Retirement and Savings Plan         Thousand      88.99   
                                         Oaks, CA     
7     6   Employees Savings and Retirement Plan   New York, NY    88.44   
of Credit Suisse                                       
8     16  
Novartis Pharmaceuticals Corporation   East Hanover,    88.16   
Investment Savings Plan                      NJ        
9     2   
Southern California Permanente Medical  Pasadena, CA    87.57   
Group Retirement Plan     
10    7   
Bayer Corporation Savings and           Pittsburgh,     87.37   
Retirement Plan                              PA        
11   N/A  
Bristol-Myers Squibb Company Savings    New York, NY    87.23   
and Investment Program                                 
12    13  ExxonMobil Savings Plan                 Houston, TX     87.07
13    18  Chevron Employee Savings Investment    San Ramon, CA    87.03   
14    14  Sanofi-Aventis US Savings Plan          Bridgewater,    86.96   
15   N/A  BASF Corporation Retirement Savings    Florham Park,    86.95   
Plan                                         NJ        
16    17  Bechtel Trust & Thrift Plan                 San         86.76   
                                      Francisco, CA   
17   N/A  Ernst & Young Partnership Retirement    Secaucus, NJ    86.65   
18    15  Anadarko Employee Savings Plan              The         86.64   
                                      Woodlands, TX
19   N/A  Google Inc. 401k Savings Plan             Mountain      86.61   
                                         View, CA     
20    19
 Genentech, Inc. Tax Reduction            South San      86.36   
Investment Plan                        Francisco, CA
21    21  ConocoPhillips Savings Plan            Bartlesville,    86.30   
22    12  IBM 401k Plus Plan                       Armonk, NY     86.28
23    8   BP Employee Savings Plan                Houston, TX     86.26
24    24  Shell Provident Fund                    Houston, TX     86.23
25    29  
AstraZeneca Savings and Security Plan   Wilmington,     85.92   
26    26  
GlaxoSmithKline Retirement Savings     Philadelphia,    85.79   
Plan                                         PA        
27    11  UBS Savings and Investment Plan         New York, NY    85.39
28    23  Federal Express Corporation Pilots'     Memphis, TN     85.26   
Retirement Savings Plan                                
29    28  Goldman Sachs 401k Plan                 New York, NY    85.25
30   N/A  The Vanguard Retirement and Savings     Malvern, PA     85.20   
Kaiser on Pace to Take the Membership Mantle from
Regence in 2012
After facing more than a 600,000 membership deficit four years ago, Regence BlueCross
BlueShield appears to be losing its commanding lead over Kaiser Permanente
By:  Blair Thomas
The Lund Report
December 22, 2011

Membership at Regence BlueCross BlueShield continued its freefall when the latest
enrollment numbers were released by the Oregon Insurance Division.

On September 30, Regence came within less than 1,500 members from relinquishing its
decade-long lead to Kaiser Permanente, and was the only health plan to lose members
during the third quarter. Regence now has 475,002 members -- following a drop of 1,292 –
representing a 2.3% decrease.  

Four years ago, Regence had a commanding lead over its competitor, with 1.1 million
members in December 2007, according to historical records filed with the Insurance

When asked for a response about its declining membership, Scott Burton, public relations
spokesman, refused to comment.  Regence also saw its net income fall by 59% to $28.9
million compared to last year.

LifeWise Health Plan, meanwhile, experienced a 10% growth in membership during the
third quarter – the highest of any plan. With an enrollment of 57,393 members, the insurer
has nearly reclaimed its total of 58,332 members when the year started.

Overall, Oregon’s seven domestic insurers grew by a half percent, bringing in 8,705 new
members. However, these figures do not represent self-insured groups which are not
required to file financial or enrollment information with the Insurance Division.

Meanwhile, Kaiser continued spending the highest percentage of its insurance premiums
on medical expenses, known as the medical-loss ratio – 93.5%, while HealthNet ranked at
the bottom for the second consecutive quarter at 79.5%.

When it came to the combined $177.3 million in prescription drug spending, Kaiser
accounted for nearly one-third of the total expenditures -- $66.1 million, while Regence
spent $12 million less despite having a similar membership.

There was $4.6 billion spent on hospital and medical expenses by commercial insurers, up
3.8 percent from last year. Lifewise spent 17% less, explained by enrollment losses and
accumulated less net revenue, while PacificSource spent 10% more in the same span, as a
result of its net gains.

Premium revenues totaled more than $5.2 billion, a 2.6% increase from last year, while
PacificSource witnessed a 9.2%, increase – the largest of all seven insurers -- bringing in
$476.7 million.

Lifewise suffered an 11.3% drop in revenues with a total of $128.8 million due to a
decrease in enrollment numbers from the end of 2010 to the start of 2011, even though
enrollment increased in each of the past three quarters.

Net investment gains decreased 8.8% through September, with Kaiser taking a 37.5%
decrease compared to 2010. Kaiser, Regence and Providence experienced a combined
loss of $19 million during the same time frame.

On the positive side, ODS Health Plan and LifeWise saw their investment portfolios
increase by 159% and 154% respectively compared to September 2010. Those increases
are especially significant because both insurers posted more than $1.5 million in
investment losses during the same period last year.

Also, Providence paid approximately $53 million to Providence Health & Services to
implement the Epic electronic medical records record system, and required Insurance
Division approval for the transaction.

ODS witnessed a growth in net income by $7.1 million, representing a 128% increase.
There are a number of factors responsible for this, according to Dave Evans, chief
financial officer. “We have seen our net income improve due to our continued focus on
innovation, medical management, and other cost-saving initiatives,” he explained. “In
addition, we continue to see growth in our overall membership that allows us to leverage
our administrative costs.”

Other than ODS, the other insurers saw their net income drop by a combined 17% - - $139
Kaiser net income for 2011 was $2.0 billion (Kaiser
press release)
Kaiser Foundation Hospitals and Health Plan Report Fiscal Year 2011 and Fourth
Quarter Financial Results
10th of February 2012
PR Newswire     
Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and their subsidiaries
(KFH/HP) reported today that combined total operating revenue for 2011 was $47.9
billion, compared to $44.2 billion in 2010. Operating income for 2011 was $1.6 billion,
equal to 3.3 percent of operating revenue, compared to $1.2 billion, equal to 2.7 percent
of operating revenue, in 2010. Net non-operating income was $426 million in 2011,
compared to $789 million in 2010. As a result, net income for 2011 was $2.0 billion,
consistent with that of the prior year.

Capital spending in the communities served by Kaiser Permanente for 2011 increased to
$3.2 billion, compared to $2.9 billion in 2010. Spending on new health care facilities
made KFH/HP one of the major providers of construction jobs in California. Major hospital
construction projects are underway in Anaheim, Fontana, Los Angeles, Oakland,
Redwood City, and San Leandro.

Combined total operating revenue for the quarter ending Dec. 31, 2011, was $12.1
billion, compared to $11.1 billion in the same period in 2010. Operating income was $247
million in the fourth quarter of 2011, compared to $42 million in the same quarter of the
prior year. Net non-operating income was $227 million in the fourth quarter of 2011,
compared to a net non-operating income of $205 million in the same quarter of 2010. As
a result, net income for the fourth quarter was $474 million, versus $247 million for the
same period in 2010. Capital spending in the fourth quarter of 2011 was $1.0 billion,
compared to nearly $1.2 billion in the same quarter in 2010.

Total membership increased by approximately 249,000 members over the past year. As
of Dec. 31, 2011, membership totaled more than 8.9 million members.

"Our year-end results are in line with our historical financial performance and support our
continuing investments in improving access, affordability and high-quality health care,"
said Kathy Lancaster, chief financial officer and executive vice president.
"By strategically investing in our infrastructure, we have been able to build facilities and
use technology in ways that allow us to deliver the right care, in the right place, at the
right time."

"Kaiser Permanente's mission to provide high-quality, affordable health care leads us to
find new and innovative ways to deliver total health,"
said George Halvorson, chairman and chief executive officer.
"For five years, our members have had the ability to email their doctors from their home
or laptop computers, and now – with the new smart phone connectivity tools – our
members can more easily check lab results, refill prescriptions and communicate with
their doctors' office from wherever they are via their mobile device. Lab results can go
directly from the laboratory to the patient's smart phone – often within hours of the tests
being run. This is the future of health care."

In 2011, KFH/HP provided approximately $1.8 billion, 3.8 percent of its operating
revenue, in support to community benefit programs and services. KFH/HP devote
resources to improve the health of our members and the communities we serve. Our
community benefit investment supports a wide range of programs that provide care for
low-income individuals, support community-based health partnerships, conduct research,
train health care workers, and expand access to health care within the safety net.

Except for historical information contained herein, the matters discussed in this media
release are forward-looking statements that involve risks and uncertainties.
Kaiser earnings are
up 30% / HMO slowed
growth rate of its
February 16, 2007|By Victoria
Colliver, Chronicle Staff Writer

George Halvorson had warned
about cutting Kaiser spending.
Chronicle photo, 2003,

Kaiser Permanente's health
plan and hospitals posted
solid earnings in 2006, with
net income up 30 percent over
the previous year, the health
maintenance organization
reported Thursday.

Oakland's Kaiser said it
earned $1.3 billion last year
compared with $1 billion in
2005. Revenue increased to
$34.4 billion from $31.1 billion.

At the same time, the HMO's
2006 operating margin was a
relatively modest 2.8 percent,
up slightly from the 2.6
percent margin recorded in
2005. Operating margin, a key
measure of the financial
performance of a hospital
system, had hit a robust 5
percent in prior years.

In the quarter ended Dec. 31,
Kaiser posted net income of
$215 million and operating
revenue of $8.7 billion,
swinging from a loss of $211
million and revenue of $7.9
billion in the fourth quarter of

The gain in earnings for the
year was due in part to
slowing the growth rate of
costs, Chief Financial Officer
Kathy Lancaster said in a

Kaiser's financial improvement
came despite a series of
problems. During 2006, Kaiser
faced a crisis that led to the
closure of its
California kidney-transplant
program. After allegations
of mismanagement in the
program, state and federal
regulators conducted
investigations and levied

Meanwhile, the HMO faced
breakdowns in its nearly $4
billion electronic medical
information system. Concerns
over outages in the system,
called HealthConnect,
prompted the state
Department of Managed
Health Care to request that
Kaiser provide the agency with
information on backup
procedures. The department
is evaluating Kaiser's
response, spokeswoman
Lynne Randolph said.

In addition, Kaiser had to
make heavy outlays to meet
earthquake-safety standards
and expand its network of
hospitals and other facilities.
Capital spending grew to $2.8
billion in 2006 from $2.5 billion
the previous year.

Despite the challenges, Kaiser
officials characterized 2006 as
a positive year.

"We are on our way to
completing the largest civilian
deployment of electronic
health records in the world
and constructing new
hospitals and clinics to meet
the growing demand for our
services," said Kaiser's chief
executive, George Halvorson,
in a statement. "When you put
it all together, Kaiser is well
positioned to meet the
challenges facing health care."

Halvorson had warned late
last year that if Kaiser didn't
curb spending it could incur
billions in losses in future
years due to high operating
costs and decreasing
reimbursement from Medicare
and other sources.

Kaiser's generally healthy
financial report prompted
some industry experts to
question its recent premium

Kaiser's message to
employers "was they needed
the increases to maintain their
financial health and painted a
pretty pessimistic picture of
the future," said Charles
Rosson, senior vice president
at Woodruff-Sawyer & Co. in
San Francisco, an insurance
brokerage and consulting firm.
"I would hope this means
they've addressed whatever
financial concerns they have
and their future rate increases
will be more in line with the
Appellate court holds plaintiffs
not required to comply with
C.C.P. 425.13 when suing a
health care plan
FEBRUARY 23, 2012
by Donna Bader

In  Kaiser Foundation Health
Plan, Inc. v. Superior Court
(Rahm) (2012)  Cal.App.4th,
Anna Rahm and her parents
sued Kaiser Foundation Health
Plan and two Kaiser health care
providers, alleging they had
devised an insurance
compensation scheme that
induced Kaiser's physicians to
deny medical services to plan

They alleged Kaiser's
system allowed its
contracted physicians
the responsibility of
deciding whether to
give insureds benefits
under their contracts.  

Part of that decision
must be based in part
upon cost savings to

These cost savings are
translated into rewards
and bonuses to the
physicians who
withhold treatment...
Interestingly, Kaiser-Permanente doesn't write about Permanente Medical Group income--
perhaps because Permanente IS A FOR-PROFIT COMPANY

Kaiser Foundation Hospitals and Health Plan Report Fiscal Year
2012 and Fourth Quarter Financial Results
February 8, 2013

Contact: Laura Dunn, Kaiser Permanente, 510-414-9245

OAKLAND, Calif. — Kaiser Foundation Hospitals, Kaiser Foundation Health Plan, Inc., and
their subsidiaries (KFH/HP) reported today that combined total operating revenue for 2012
was $50.6 billion, compared to $47.9 billion in 2011. Operating income for 2012 was $1.7
billion, equal to 3.3 percent of operating revenue, compared to $1.6 billion, equal to 3.3
percent of operating revenue, in 2011. Net non-operating income was $925 million in 2012,
compared to $426 million in 2011. As a result, net income for 2012 was $2.6 billion,
compared to $2.0 billion in 2011.

As not-for-profit organizations, KFH/HP use their net income to make investments in care-
delivery facilities and technology supporting our members, patients and the communities we
serve. Capital spending by KFH/HP in 2012 was $3.5 billion, compared to $3.2 billion in
2011. Capital investments in new and upgraded health care facilities made KFH/HP a major
source of construction jobs in California. KFH/HP’s capital spending includes the current
phase of seismic upgrades occurring throughout California. KFH/HP opened one new
hospital and 12 new medical office locations across its regions in 2012.

Combined total operating revenue for the quarter ending Dec. 31, 2012, was $12.7 billion,
compared to $12.1 billion in the same period in 2011. Operating income was $179 million in
the fourth quarter of 2012, compared to $247 million in the same quarter of the prior year.
Net non-operating income was $330 million in the fourth quarter of 2012, compared to a net
non-operating income of $227 million in the same quarter of 2011. As a result, net income
for the fourth quarter was $509 million, versus $474 million for the same period in 2011.
Capital spending in the fourth quarter of 2012 was $1.0 billion, compared to the same
amount in the fourth quarter of 2011.

Total membership increased by approximately 131,000 members over the past year. As of
Dec. 31, 2012, membership totaled more than 9 million members.

“Our year-end operating income as a percent of revenue is consistent with the prior year’s
performance,” said Chief Financial Officer and Executive Vice President Kathy Lancaster.
“We are pleased that our performance allows us to continue to make capital investments in
our facility infrastructure and IT systems that allow us to deliver high-quality, affordable
health care to our members and the communities we serve.”

Kaiser Permanente has demonstrated ongoing leadership in providing new and innovative
ways to improve care and the total health of its members and patients. All Kaiser
Permanente members can access My Health Manager, Kaiser Permanente’s personal
health record, to manage their personal health information online. In 2012, Kaiser
Permanente members viewed 33.3 million laboratory results, exchanged 13.4 million emails
with their Kaiser Permanente doctors and caregivers and refilled 11.9 million prescriptions

“Our members enjoy 24/7 connectivity to support their total health,” said Chairman and
Chief Executive Officer George Halvorson. “From securely emailing doctors, viewing lab
results, making appointments, or refilling prescriptions — our new levels of connectivity are
available online and via mobile devices. We also are leading the way on improved health as
caregivers prescribe exercise as first-line medication, and track activity as a vital sign on
our members’ electronic health records.”

In 2012, KFH/HP provided approximately $2.0 billion, 3.9 percent of its operating revenue,
in support to community benefit programs and services. KFH/HP devote resources to
improve the health of our members and the communities we serve. Our community benefit
investment supports a wide range of programs that provide care for low-income individuals,
support community-based health partnerships, conduct research, train health care workers,
and expand access to health care within the safety net.

...KAISER           730.00

HOSPITALS INC.           250.00

INC.           100.00


SCPMG           250.00

MEDICAL GROUP           50.00


LLC           250.00
Aug 12, 2013

Kaiser Permanente income rockets in Q2
Sacramento Business Journal
Kathy Robertson

Nonprofit Kaiser Permanente generated net income of $756 million for the
second quarter, a whopping 47 percent increase from $514 million for the
same period last year.

Operating revenue rose 6 percent to $13.4 billion from $12.6 billion, while operating
income for the quarter rose almost 45 percent, to $613 million from $424 million.

Numbers for the first half of 2013 are strong, too.

Operating revenue rose 5.5 percent to $26.7 billion from $25.3 billion. Operating
income rose 29 percent, to $1.2 billion from $931 million and net income rose 15.4
percent, to $1.5 billion from $1.3 billion for the first half of 2012. First-half results are
frequently higher than second-half results because revenue remains steady while
costs rise throughout the year.

Investment income for the first half rose 2.8 percent, to $363 million from
$353 million for the same period last year.

“Our operating results, coupled with a sound investment strategy, allow us to
continue to make investments in care delivery programs, facilities and technology to
support our members, patients and the communities we serve,” chief financial officer
Kathy Lancaster said in a news release.

Capital spending in the second quarter of 2013 was $769 million, compared to $572
million for the same quarter last year. Capital spending for the first half was $1.5
billion, down slightly from $1.6 billion last year.

Kaiser added 78,066 members during the first half of the year for a national total of
more than 9.1 million. More than 660,000 of them live in the Sacramento region.
San Diego Education Report
San Diego
Education Report
Blog posts from Thank Heaven
for Insurance Companies:
Kaiser Permanente Profits
Kaiser Family Foundation
Kaiser billing abuses
Kaiser Permanente agrees to
$5.35 million settlement in
TCPA class action
December 8, 2014
By Kyla Asbury
Legal Newsline

SAN DIEGO (Legal Newsline) –
A federal judge has granted
preliminary approval of a
settlement in a class action
lawsuit against Kaiser
Permanente for
unsolicited, pre-recorded
messages to former
customers' cell phones.

Kaiser will pay $5.35 million to
settle the class action lawsuit in
which Rafael David Sherman
claimed it violated the
Telephone Consumer
Protection Act by sending the
messages to cell phones of
former customers after they had
canceled their health insurance
plans with the company,
according to the order filed Dec.
4 in the U.S. District Court for
the Southern District of

Edward J. Schwartz U.S.
Courthouse in San Diego

Class members can expect to
receive a pro rata share of the
settlement proceeds, and if all
of the approximately 864,412
members file a claim, each will
receive approximately $4,
according to the settlement

District Judge John A. Houston
also approved class certification.

"The court preliminarily finds
that the lawsuit satisfies the
applicable prerequisites for
class action treatment under
Fed. R. Civ. P. 23, for purposes
of settlement only," Houston's
order states.

If more than 1,000 class
members opt out of the
settlement, Kaiser has the right
to terminate the settlement.

The class action lawsuit was
initially filed on April 24, 2013, in
federal court.

Sherman claimed Kaiser
violated the TCPA when it called
him after he canceled his health
insurance plan with the

Sherman filed a motion for
settlement on Oct. 21.

"The court preliminarily finds
that the settlement of the lawsuit
… is in all respects
fundamentally fair, reasonable,
adequate and in the best
interests of the class
members…," the order states.

Attorneys fees will not exceed
25 percent of the settlement
fund and an incentive award for
Sherman will not exceed $1,500.

The defendant denies that it
committed any wrongful act or
violated any law or duty,
including that it lacked prior
express consent to make the
calls, according to the
settlement document.

A final approval hearing is
scheduled for April 27.

Sherman is represented by
Joshua B. Swigart of Hyde &
Swigart in San Diego; and
Abbas Kazerounian and Jason
A. Ibey of Kazerouni Law Group
APC in Santa Ana, Calif.

Kaiser is represented by Felicia
Yu, and Janet M. Lee of Reed
Smith LLP in Los Angeles.

U.S. District Court for the
Southern District of California
case number: 3:13-cv-00981

From Legal Newsline: Kyla Asbury
can be reached at
Doctor Calls Kaiser a False Nonprofit
Courthouse News Service
October 13, 2015   

LOS ANGELES (CN) - A doctor wants California's tax board to collect eight years'
worth of insurance taxes from Kaiser, alleging Kaiser has hoarded money by claiming
it is not an insurer and is a nonprofit, in Los Angeles superior court.
Representing himself and other California citizens and taxpayers, Dr. Michael Myers
brought a petition for a writ of mandamus against the State Board of Equalization;
Dave Jones, Insurance Commissioner of the State of California; and Betty T. Yee,
Controller of the State of California; with Kaiser Foundation Health Plan, Inc., as real
party in interest.
Myers wants the respondents to do their jobs collecting taxes from Kaiser.
As an insurer, Kaiser should pay a gross premium tax (GPT), which is designed to
approximate the volume of business done in the state, and thus the extent to which
insurers have availed themselves of the privilege of doing business in California,"
Meyer's complaint states.
Kaiser is the largest health care plan in the State of California, collecting over $38
billion in annual premiums to provide health care coverage for over 7 million people,
according to Myers. Under law, it should pay 2.35 percent of the premiums into
California's coffers, he says.
But Kaiser has never filed required gross premium tax returns, up to the time the
lawsuit was filed, and is liable for eight years of past-due payments, interest and
penalties, Myers claims.
Respondent State Board of Equalization has not assessed the taxes, the
commissioner has not demanded the tax returns be filed, and the controller has not
notified the commissioner that Kaiser is delinquent in paying the tax, or filed suit
against the healthcare giant, to collect, he claims.
"Although it is currently considered a 401(c)(3) charitable organization, as of June 15
this year Kaiser has collected well over $21 billion more in assets than it is required to
keep in its reserves. Yet Kaiser pays no California state income tax or federal income
tax," the complaint states.
The complaint continues, while it was supposed to be charitable and earned billions,
"instead of providing premium discounts to its members/subscribers or decreasing its
income-generating coinsurance, fees, and deductible charges imposed on its
members, Kaiser instead continues to accumulate and hoard unreasonable excess
[reserve] amounts. Furthermore, Kaiser bestows a largess on its high level executives
with non-compliant pension plans and even funds a non-compliant pension plan for
physicians employed by the medical groups contracted with Kaiser to treat Kaiser
members. Those physicians are not employees of Kaiser and the medical groups are
ostensibly independent, for-profit corporations whose only relationship with Kaiser is
contractual. Nevertheless, Kaiser currently has a $6 billion pension liability for those
purportedly independent physicians. If that is not enough, Kaiser contractually
indemnifies those medical groups at Kaiser Foundation Hospitals, another purportedly
independent charitable corporation, with respect to their respective professional
liability. Kaiser maintains the above-described professional liability insurance, its
general liability insurance, and other executive perquisites mostly through
self-insurance and two subsidiary captive insurers it caused to be domiciled in
Bermuda, outside of regulatory jurisdiction of the [appropriate U.S. federal agency].
The excessive reserves, lavish executive salaries, generous pension funds, and
provision of liability insurance to the independent physicians and hospitals that
provide care to Kaiser's members are evidence of the tremendous economic benefit
Kaiser has received as a result of unlawfully avoiding the GPT (gross premium tax)."
(Parenthesis added.)
Only insurers are to pay the tax, and Kaiser claims to be a healthcare service plan
and Health Maintenance Organization, and not an insurer, according to the complaint.
But "whether a company is an 'insurer' for purpose of the gross premium tax is
determined by what the company does, not what it calls itself," the complaint states,
after citing precedent.
"It is well settled that health care service plans such as Kaiser are 'engaged in the
business of insurance,'" according to a California Court of Appeals, Myers says.
Also, the United States Supreme Court has found that "an HMO provides healthcare,
and it does so as an insurer" Myers says, citing precedent.
The gross premium tax is based on the premiums that Kaiser collects "from its
members in exchange for providing indemnity for future contingent medical costs
attributable to those members."
Myers is represented by Timothy J. Morris of Gianelli & Morris in Los Angeles, Richard
J. Ayoob of Ajalat, Polleu Ayoob & Matarese in Glendale, and Jerry Flanagan and Pam
Pressley of Consumer Watchdog in Santa Monica.
Report Finds Medi-Cal Expansion Strains San
Diego’s Safety Net
July 14, 2016
By Kenny Goldberg

...The report found that over the last two years, the number of San
Diegans with Medi-Cal coverage has nearly doubled to 700,000.

Ha Tu, senior researcher at Mathematica Policy Research, co-wrote
the report. She said by and large Medi-Cal recipients have gotten
access to primary care at San Diego's community clinics.

“But I think the area where the San Diego safety net has faced more
severe challenges have been in access to specialty care and
behavioral health care," Tu said.

Some community clinics now offer access to mental health providers
on site. But providers in many other specialties decline to treat Medi-
Cal patients because of low reimbursement rates.

The analysis also examined the state of San Diego's hospitals and
health care systems, and finds a mixed bag.

For instance, Kaiser Permanente has been
making major gains in San Diego.
One in five
insured residents now have Kaiser coverage.

Sharp Healthcare and UC San Diego Health have also gained
market share over the last couple of years, while Scripps
Health has lost a bit of ground.

The report finds most of the county’s smaller independent hospitals
have been losing patient volume and struggling financially.