In Brief: Kaiser Reports Earnings; Medi-Cal Outreach For Foster Children Begins
Kaiser Reports Strong 2013 Financial Results
Kaiser Foundation Health Plans and Kaiser Foundation Hospitals reported revenue and net income for calendar 2013 that was up moderately from 2012.
The Oakland-based non-profit Kaiser reported net income of $2.7 billion in 2013 on revenue of $53.1 billion. That compares to 2012 net income of $2.6 billion on revenue of $50.1 billion, an increase of 4% and 6%, respectively.
For the fourth quarter ending Dec. 31, revenue was $13.5 billion, compared to $12.5 billion for the fourth quarter of 2012, an increase of 8%. Net income for the quarter was $529 million, up 4 percent from the year-ago quarter's $509 million.
The net income figures included $1 billion in non-operating income from investments, up from $922 million in 2012. Operating income was $1.8 billion, compared to $1.7 billion in 2012.
Membership for the entire system was up by 30,000 for 2013, to 9.1 million members. The company divested its Ohio operations during 2013 after years of declining enrollment. It had about 86,000 enrollees last year, compared to more than 103,000 in 2011. Kaiser took a loss of $119 million from discontinued operations.
“In 2013, we maintained a consistent operating income as a percent of revenue; it is at a level that allows us to continue making investments in the facilities, technology and care advances that meet the needs of our members, customers and communities,” said Kaiser Chief Financial Officer Kathy Lancaster.
Kaiser spent $1 billion on capital projects in the fourth quarter of 2013, identical to the 2012 figure. It spent $2 billion on community benefits and services.
Kaiser's Permanente Medical Group is a for-profit operation and does not publicly report earnings.
Medi-Cal Outreach Begins For Foster Children
A California-based non-profit organization has launched a campaign to raise awareness about the extension of insurance coverage for former foster children living statewide.
Prior to the implementation of the Affordable Care Act, foster children lost their insurance coverage after they turned the age of 21. The healthcare reform law extended the age limit to 26, commensurate with the coverage afforded to children who remain on commercial plans held by their parents.
Children's Now, which is based in Oakland but has offices in other parts of the state, is working with the California Department of Health Care Services and other agencies to track and provide outreach to foster children who have recently aged out of the system and ensure they remain enrolled in Medi-Cal. The outreach campaign, known as Coveredtil26, is funded with a grant from the California Wellness Foundation.
Foster children are eligible for Medi-Cal if they were in foster care here or in any other state at the age of 18.
“The Affordable Care Act’s extension of health coverage to age 26 fills a critical need for former foster youth who do not have the same option as their peers to stay on a parent’s insurance plan,” said Ted Lempert, President of Children Now. “However, it’s imperative that state and county agencies work together to ensure the processes for enrolling in coverage are easy to navigate for this vulnerable population.”
