[kaiserthrive.org editor's note: Our apologies for not posting this sooner, but due to recent personal obligations it has been difficult to update as often as we would like to. Unfortunately I also don't have much time tonight for commentary, although this article and Kaiser's news release certainly scream out for more than a little of it. Regular readers of this blog can probably guess what we might say, so please share your own ideas in the comments and we'll get back to regular posting as soon as we can. For more on Kaiser's sudden surge of 'not-for-profits' see Justen Deal's blog, where he gives his take on the situation in Kaiser Permanente and the art of funny money. Funny screwy, not funny ha-ha, but you probably guessed that since it's Kaiser he's talking about.]
From Inside Bay Area:
Kaiser reports income boost
By Janis Mara, BUSINESS WRITER
08/04/2007
Oakland-based Kaiser Permanente appears to be in good financial health, reporting that operating income rose sharply in the second quarter and predicting more moderate 2008 premium increases as a likely result.
“We believe the results of this quarter will allow us to moderate future rate increases,” said Tom Meier, corporate treasurer for the nonprofit health maintenance organization made up of Kaiser Foundation Health Plan Inc., Kaiser Foundation Hospitals and their subsidiaries.
Of the $877 million in second-quarter operating income, $356 million was “a positive anomaly” because of cuts in reserves for professional liability and workers’ compensation. “If you exclude this adjustment, operating income would have been $521 million,” Meier said.
This still compares favorably with the second quarter of 2006, when Kaiser reported operating income of $198 million.
Revenue rose around 10 percent to $9.4 billion.
In 2007, Kaiser premiums went up on average “mid-to-high single digits in percentages,” Meier said, though the amount varied widely between different groups such as Medicare, individual and commercial. The 2008 rate increases are still being determined, but will likely be smaller because of the good second-quarter results, he said.
Kaiser membership remained at 8.7 million members in the quarter.
A consumer advocate said the financial results show that Kaiser premiums are too high.
“They’re bringing in that money, and it’s not from new members, so the current members are overpaying,” said Jamie Court, president of the Foundation for Taxpayer and Consumer Rights. “This is an example of how overpriced Kaiser policies are in an unregulated market and why we need health insurance regulation.”
Kaiser Thrive Exposed would like to personally thank Dr. Geoff Galbraith - Kaiser Permanente Care Management Institute board member; and Vice President, Hawaii Permanente Medical Group, Quality Improvement Management - for inspiring us to create this website. Did we make it into the top 5?
Almost a billion dollars in profit in THREE months?!!? At that rate they’re making more profit than the for0profit HMOs. Something is really wrong with this picture. No wonder health care in California is so broken. The non-profit HMOs make more money than the for-profit HMOs, while both race to kill as many members as possible. Oops, I mean ‘care for’ as many members as possible………
Greed at it’s finest.
How is kaiser “not for profit” if its making this much money? Why isn’t there an investigation??
When I tell people what the “Thrive” campaign costs Kaiser, people have that deer in the headlight look. Just think about what that image is costing, and how that $ could be used to earn the reputation they want an illusion to portray.
If you aren’t intelligent, hard working, persistent, and willing to stand up to the Kaiser’s ‘push back’, then for Godsakes, get rich early in life.
In all fairness, I’ve had my rounds with Blue ***** too. Our healthcare system owns Congress.
[...] We’re practically speechless, so we’ll just ask one question: How can a non-profit double its net income — with zero membership growth — and still call itself a non-profit? [...]