September 18, 2014 11:31 AM ET

Healthcare Providers and Services

Company Overview of Kaiser Foundation Health Plan Inc.

Company Overview

Kaiser Foundation Health Plan Inc., an entity of Kaiser Permanente, is a nonprofit public-benefit corporation that contracts with individuals and groups to arrange comprehensive medical and hospital services. The company contracts with Kaiser Foundation Hospitals and medical groups to provide these services. It serves members in California, Colorado, Georgia, Hawaii, Maryland, Ohio, Oregon, Virginia, Washington, and District of Columbia. Kaiser Foundation Health Plan Inc. was founded in 1945 and is headquartered in Oakland, California.

1 Kaiser Plaza

Oakland, CA 94612-3610

United States

Founded in 1955





Key Executives for Kaiser Foundation Health Plan Inc.

Chairman and Chief Executive Officer
Executive Vice President and Chief Financial Officer
President of Southern California Region
President of Hawaii Region
President of Northern California Region
Compensation as of Fiscal Year 2014.

Kaiser Foundation Health Plan Inc. Key Developments

Kaiser Foundation Hospitals and Kaiser Foundation Health Plan, Inc. Appoint Richard Shannon as Boards of Director

Richard Shannon, MD, executive vice president for Health Affairs for the University of Virginia, has joined the boards of directors of Kaiser Foundation Hospitals and Kaiser Foundation Health Plan, Inc. Dr. Shannon comes to Kaiser Permanente with more than 30 years of experience in health care innovation and advocacy related to quality improvement and patient safety. He is responsible for aligning the key components of the University of Virginia Health System to achieve the goal of becoming a top-performing academic medical center.

California Court of Appeal Grants Summary Judgment in Favor of Kaiser Foundation Health Plan Inc

The California Court of Appeal affirmed a trial court's judgment on the pleadings in favor of a health plan administrator and a medical group in a breach of contract action brought by a plan participant arising from the defendants' alleged failure to order and/or approve an MRI, resulting in an adverse health outcome. The complaint failed to support its claim that the plan instituted disincentives to physicians for ordering MRIs, and the claim was otherwise barred under an applicable statute. Anna Rahm was enrolled in a healthcare plan administered by Kaiser Foundation Health Plan. In 2008, Rahm began experiencing back pain. On Mar. 12, 2009, Rahm visited her primary care physician, Charlene Huang, who concluded an MRI was necessary, but stated she lacked the authority to order one. Huang referred Rahm to the physical medicine department of Southern California Permanente Medical Group. Physician Ngan Vuong told Rahm that an MRI could only be authorized if she was undergoing back surgery. In June 2009, Huang ordered an MRI, which showed a growth in Rahm's pelvis that was later identified as an aggressive form of bone cancer. Rahm's right leg and a portion of her pelvis were later amputated. The court of appeal found that an applicable state statute stated that health plans and providers may only be held liable for their own acts or omissions and were not liable for the acts or omissions of others. Under applicable precedent, that statute has been interpreted as prohibiting an action against a health plan arising from a physician's delay in approving certain forms of treatment. Rahm sued the plan and the Medical Group for breach of contract and bad faith. The complaint alleged the defendants devised a "system of withholding benefits from insureds" that resulted in the unreasonable deprivation of the benefits of their contracts with Kaiser. A trial court found the plan did not dictate the Medical Group doctors' medical decisions and further found there was no evidence the plan instituted disincentives to physicians for ordering MRIs. The trial court granted summary judgment in favor of the defendants, and Rahm appealed.

California Man Files Lawsuit Against Kaiser Foundation Health Plan

A California man filed a lawsuit against Kaiser Foundation Health Plan claiming that he was denied treatment for obsessive-compulsive disorder (OCD). The lawsuit, filed in Alameda County Superior Court, alleges the Kaiser plan does not offer mental health treatment services on par with treatment for physical illnesses, as required under California's Mental Health Parity Act. The man, Charles Dion, claims his Kaiser doctor agrees that individual cognitive behavioral therapy is medically necessary for Dion. Despite that, Kaiser refuses to cover the treatment, allowing only group therapy or medication as treatment for OCD. The lawsuit seeks damages on behalf of Dion and other similarly situated Kaiser members.

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