News Headlines Article

Kaiser Permanente to Buy Major Insurer in Washington State
The Wall Street Journal

Kaiser Permanente has agreed to acquire a major insurer in Washington state, signaling a more aggressive expansion strategy for the big California-based managed-care operator at a time when its integrated model is increasingly fashionable.

The nonprofit’s acquisition of Seattle-based Group Health Cooperative, which like Kaiser includes both an insurance arm and health-care providers, would add around 590,000 new members and a far broader geographic footprint in the state of Washington. To acquire Group Health, itself a nonprofit, Kaiser plans to spend $1.8 billion, which will go to establish a new community foundation based in Seattle. The deal will require the approval of the voting members of Group Health Cooperative as well as regulators.