Kaiser Permanente Announces It Will Leave Oregon Health Plan

Kaiser Permanente, the largest HMO in Oregon, on Sept. 24 told state officials that it will exit the Oregon Health Plan, the state's public health program, by July 1, 2003, the Oregonian reports. The not-for-profit health insurer, which serves some 12,000 beneficiaries in the Salem and Portland areas, said it expects to lose about $18 million if it continues to take part in the program. Kaiser's decision follows the exit of the other four largest commercial health plans in the state over the past two years; the remaining OHP managed care plan, Providence Health Plan, has reduced the number of Medicaid beneficiaries it covers to 7,400, less than one-fifth of the number it previously covered. Hersh Crawford, director of the state Office of Medical Assistance Programs, said, "We'll be sorry to see [Kaiser] leave. But I can understand why they have made this decision. They have not been making money on our line of business." Dr. Al Weiland, Kaiser's regional medical director, said in a written statement that the company will "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 company also said it would offer "extra help" to especially "vulnerable" beneficiaries with chronic conditions and might offer fee-for-service coverage "in some cases," according to the Oregonian (Rojas-Burke, Oregonian, 9/25).