News release: National

September 23, 2005

Contact Matthew Schiffgens
Kaiser Permanente Communications
510-271-5953

Kaiser Permanente to Participate In the Medicare Prescription Drug Plan

(Oakland, CA) Kaiser Permanente announced today that it will participate in the new Medicare prescription drug program for 2006, and that all eight of its regions were awarded contracts by the Centers for Medicare & Medicaid Services (CMS). Kaiser Permanente cares for approximately 880,000 Medicare members, and is the largest health plan serving the Medicare program.

Kaiser Permanente’s participation in the new Medicare prescription drug program demonstrates its ongoing commitment to care for our nation’s seniors and people with disabilities, as the federal program undergoes its most far-reaching changes since its inception in 1965. The Medicare Prescription Drug, Improvement and Modernization Act (MMA) was signed into law in 2003, providing outpatient prescription drug coverage beginning Jan. 1, 2006.

“We are delighted to participate in this important enhancement to the Medicare program,” said Herman Weil, senior vice president for Federal Programs. “Kaiser Permanente has long provided its Medicare members with convenient access to high-quality and affordable care, and we believe our new Medicare prescription drug plans offer even greater value to our Medicare members, including brand name and catastrophic drug coverage.”

Kaiser Permanente’s Medicare prescription drug plan offerings will vary by market, however some initial plan details include:

• A majority of Kaiser Permanente’s Medicare members will have access to a zero premium drug plan, and in those markets with premiums, the range will be $9 to $27 per member per month.

• None of Kaiser Permanente’s Medicare prescription drug plans will include the use of deductibles or coinsurance. Instead, they will utilize first-dollar coverage with copays, including copays once a member reaches catastrophic coverage.

Kaiser Permanente Medicare members need not take any action at this time to enroll in the new Medicare prescription drug benefit. Kaiser Permanente will send them additional details regarding their 2006 medical benefits and new Medicare prescription drug plans after October 1, 2005, when CMS authorizes plans to begin direct marketing activities.

Medicare members have important choices to make under the new Medicare prescription drug plan. In particular we encourage Medicare members to keep in mind the following points:

• According to CMS regulations, Medicare members can only belong to one Medicare prescription drug plan at a time. Kaiser Permanente will offer the new Medicare drug plan in combination with its existing Medicare plans. Kaiser Permanente Medicare members who join another Medicare prescription drug plan will automatically lose their Kaiser Permanente health plan membership and health care providers.
• New financial assistance – Low Income Subsidy (LIS) – is available to help Medicare members with limited incomes to cover the cost of their Medicare prescription drug coverage. Kaiser Permanente will actively work to identify and qualify its existing limited income Medicare members so they can benefit from this valuable new source of financial assistance.

In addition, any Medicare member with questions about LIS may also contact the Social Security Administration directly at 1-800-772-1213 (TTY 1-800-325-0778 for the hearing and speech impaired), or visit them online at www.socialsecurity.gov/prescriptionhelp.

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 8.3 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 142,000 technical, administrative and clerical employees and caregivers, and more than 12,000 physicians representing all specialties.

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