Kaiser Permanente Launches New Consumer Directed Health Care Products
May 22, 2006
Custom Care Provides Cost-Effective Access to Kaiser Permanente’s Integrated Health Care Delivery System
Oakland, CA — Kaiser Permanente today announced the launch of the Kaiser Permanente Custom Care product suite in its California region. This new suite of Consumer Directed Health Care products offers a range of benefit design and financial accounts options, along with online health information, decision support tools, incentive and discount programs, and access to Kaiser Permanente’s integrated delivery system. Kaiser Permanente Custom Care provides customers with additional options to actively manage their health care expenses and provides consumers with the tools to become more active participants in managing their health care services and costs.
In a recent Business Roundtable survey of corporate CEOs, 43 percent reported rising health care costs as their greatest concern. “Employers are looking for solutions that reduce costs and help their employees stay healthy,” said Ted Wise, senior vice president, health plan strategy and product innovation.“ Custom Care meets this need by providing lower-cost access to our integrated health care delivery system with a variety of funding options and tools to support increased consumer participation, ultimately reducing the long term costs of health care.”
In California the first offering in the Custom Care suite of products is Custom Care HealthBuilder (HRA), which pairs a Kaiser Permanente Deductible HMO with a CarePay HRA. The CarePay HRA allows employers to provide their employees with tax-free funds to pay for their health care expenses including co-pays, co-insurance and deductibles. Employers do not pay federal, state, or FICA taxes on their HRA contributions. Funds are tax deductible, and are tax-free to the employee. The CarePay HRA is 100% employer funded, and all or part of the unused funds may roll-over year to year.
Other elements of Custom Care products will be rolled-out in California in the coming months. Nationally, several other Kaiser Permanente regions have launched qualified High Deductible Health Plans (HDHP) with CarePay HSA (Health Savings Account). The Custom Care products give employers flexibility to choose the plan design that best supports the needs of their employees.
A key advantage of Kaiser Permanente’s Custom Care product suite is the preventive health and wellness features for which the organization has long been known. “We are offering far more than just a product,” said Jerry Fleming, senior vice president, national health plan manager. “We have 60 years of experience in keeping people healthy. These health and wellness tools will help consumers make better health care decisions and continue our tradition of actively involving our members in managing their health.”
The consumer support tools include:
• Online decision support tools that help consumers better understand the cost of their health care decisions.
• Online financial management of individual health accounts.
• Online health assessment tools.
• Personalized health programs designed to help members eat better and lose weight, reduce stress, and stop smoking, offered through Kaiserpermanente.org.
• Online health and drug encyclopedia, and online health topics with related links.
• Healthy Living classes and programs offered at local medical centers.
• Discounts for massage therapy, chiropractic, acupuncture, and select fitness clubs.
• Incentive programs that provide members with financial rewards for participating in fitness programs and completing an online health assessment.
The introduction of the Custom Care suite is the latest in Kaiser Permanente’s evolution to better serve the changing needs of its customers and members. Taking advantage of its integrated delivery system as a foundation, Kaiser Permanente continues to develop new product solutions to meet the needs of customers; these include deductible plans, significant investments in technology to advance evidence-based medicine, and synchronize clinical, business management and business systems.
About Kaiser Permanente
Kaiser Permanente is America’s leading integrated health plan. Founded in 1945, it is a not-for-profit, group practice program headquartered in Oakland, Calif. Kaiser Permanente serves more than 8.5 million members in nine states and the District of Columbia. Today it encompasses the not-for-profit Kaiser Foundation Health Plan, Inc., Kaiser Foundation Hospitals and their subsidiaries, and the for-profit Permanente Medical Groups. Nationwide, Kaiser Permanente includes approximately 145,000 technical, administrative and clerical employees and caregivers, and more than 12,000 physicians representing all specialties.
For more information contact:
Kaiser Permanente National Communications
Beverly Hayon 510-271-6437