Kaiser Permanente HMO Rate Changes Set for July

Kaiser Permanente has announced a July 2018 HMO rate change for plans sold direct as well as through CaliforniaChoice and Covered California. PPO plans, grandfathered plans, and Dental or Chiropractic/Acupuncture benefits are not affected.

  • The average renewal rate increase for July – December effective groups is approximately 6.9% for Northern California and 9.7% for Southern California.
  • The new sales rate increase from January 2018 to July 2018 is approximately 3%.

These rate increase averages do not include changes for members crossing age bands. Rate changes for specific groups and families could be much higher, if they have dependents impacted by the new child age bands introduced in January.

You may wonder why rates increased in January and will go up again in July. Kaiser Permanente says Small Group rates not only reflect pool cost trends, but also a portion of the budget supporting and investing in their infrastructure – and the innovation needed to continue improving efficiency in delivering high-quality care. Kaiser Permanente is continuing a twice a year cycle for rate changes to better align rates with increasing cost trends and budget allocations.

It’s important to remind your clients who want Kaiser Permanente that premiums do not go to stockholders, but instead go back to reinvesting in their integrated delivery system.

Kaiser Permanente is still a great option, especially when purchased through a private exchange like CaliforniaChoice where employees get access to seven different health plans in one program.

If you have questions or would like to start a quote, contact your Word & Brown representative.

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