Posted at 2:55 p.m., Tuesday, November 7, 2006
Kaiser Health Plan quarterly profit up 36% nationwide
Advertiser Staff
Kaiser Foundation Health Plan, the health maintenance organization whose operations include those in Hawai'i, said it had net income rose to $417 million, an about 36 percent increase from a year earlier, though the company expressed concern about financial challenges next year as Medicare reimbursements grow at a slower rate.The Oakland, California-based health maintenance organization and insurer said operating revenue rose during the quarter to almost $8.7 billion as it attracted 30,000 new members during the three months ended Sept. 30. Kaiser, through its Kaiser Permanente Hawaii, provides healthcare or insurance to about 225,000 members here.
The parent company said the financial performance was in line with expectations but that was girding for changes to the Medicare Advantage program that are taking effect soon.
Last week Kaiser Permanente Hawaii said it would layoff roughly 45 people to cope with rising costs and falling membership locally. The Hawai'i operation is slated to release its earnings on Nov. 15.
