5 things to know about Kaiser’s acquisition of a Seattle-based insurance co-op

Kaiser Permanente acquired Seattle-based co-op Group Health, to mixed reviews, according to a Seattle Times report.

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Here are five things to know:

 

1. Group Health isn’t planning any immediate care or coverage changes. Group Health covers 600,000 patients in Washington and Northern Idaho.

 

2. Kaiser Permanente plans to contribute $1.8 billion to create Group Health Community Foundation and invest an additional $1 billion in new facilities, staff, technology and research in Washington.

 

3. Three years ago, Group Health faced more than $250 million in cuts and dozens of layoffs. The transaction places them in a “position of strength,” according to the report. Group Health officials feel the transaction will increase efficiency and drive down costs.

 

4. The final merger could take nine months and must be approved at a special meeting on Jan. 30, 2016. Voting results are expected March 12, 2016. Around 4.5 percent of Group Health’s members are registered to vote at the meeting.

 

5. The 1,400 physicians and providers in Group Health Physicians support the merger.

 

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