Press Releases: Northwest
September 24, 2002
Kaiser Permanente renewing commitment to OHP, but will leave plan the middle of 2003
PORTLAND, Ore. – Kaiser Permanente will renew its Oregon Health Plan (OHP) contract October 1, 2002, but has told the state that it will leave the plan by July 1, 2003. Currently, about 16,000 OHP members receive care from Kaiser Permanente in Multnomah, Clackamas, Marion, and Polk counties.
According to Cynthia Finter, regional president, "Kaiser Permanente is committed to serving people who do not otherwise have access to health care. We've served Medicaid members since the 1970s and OHP since it was founded in 1994. However, the growing gap between OHP funding and the cost of providing good care has led us to examine whether OHP is the most effective way for us to serve the community."
Kaiser Permanente will develop transition plans for members who will be affected by this decision. "We purposefully selected July as an effective date because our experience shows that this is a time when fewer people seek service, and we can provide extra attention to this transition," says Finter. She added that Kaiser Permanente will identify especially vulnerable members who have chronic conditions to provide extra individualized help and in some cases continue to care for them on a fee-for-service basis.
Many other health care providers have chosen not to participate in OHP, Ore. have dropped out of the program. Kaiser Permanente, which is one of the last major health plans to remain in OHP, last year decided to end OHP participation in Washington County and to limit enrollment in the four remaining counties. As OHP has evolved, Kaiser Permanente has been able to serve fewer OHP members over time—dropping gradually from about 25,000 in 2000 to 16,000 currently—and financial losses on its OHP coverage were projected as close to $18 million for 2002.
"This has been a difficult decision," says Regional Medical Director Al Weiland, MD. "Improving the health of communities we serve is the heart of our mission. We remain committed to continuing to play a role serving the Medicaid population. We'll work with the state and other community leaders on public policies that would provide a sustainable alternative to the Oregon Health Plan in which we can participate."
The health plan needed to notify the state of Oregon about its decision this week. The outcome of a long-awaited federal waiver is unknown, and could make providing care more difficult. Kaiser Permanente is reserving the right to leave OHP sooner, depending on the terms and conditions of the waiver.
Kaiser Permanente is a group practice health care organization serving the health care needs of more than 450,000 people in Northwest Oregon and Southwest Washington.
