Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Partly Cloudy Night 28° Partly Cloudy
News >  Pacific NW

Kaiser submits formal bid to acquire Group Health

Jonel Aleccia Seattle Times

Officials with California’s Kaiser Foundation Health Plan have formally applied to acquire Seattle’s Group Health Cooperative, the next step in the controversial proposal, Washington state Insurance Commissioner Mike Kreidler said Wednesday.

The application launches a review of the proposed deal, which would make the Northwest co-op part of Kaiser Permanente’s 10.1 million members in eight states and Washington, D.C.

The documents include a public summary of the proposal, but the full application will remain confidential until Kreidler’s review is complete.

“The commissioner will consider the proposal’s effect on the overall stability of the health insurance market in Washington state, including competition and consumer choice,” Kreidler said in a statement.

The deal, announced in December, hinges on a decision by about 27,000 registered voting members, who have until Wednesday to submit ballots for or against the deal. Two-thirds of the voting members must approve the plan for it to go forward. If it’s turned down, Kreidler’s review would stop. Votes are being tallied by an independent tabulator, with results expected to be announced March 12, a Group Health spokesman said.

Under the proposal, Kaiser officials said they would pay nearly $1.8 billion to establish a new nonprofit Group Health Community Foundation, and promised to spend an additional $1 billion in the next decade to expand facilities, staff, technology and research in Washington state.

Proponents of the deal say the move is necessary in an era of growing hospital and health-system acquisitions to ensure the future of care for Group Health members.

Critics contend Group Health officials didn’t provide members of the co-op, enough time to consider the plan.

One issue was the timing of the announcement, which left most of Group Health’s 600,000 members ineligible to cast ballots.

If Group Health members approve the plan, Kreidler’s review is expected to take at least six months.

Regional public meetings about the plan will be held later this year, followed by a formal public hearing once the review is finished.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe to the Coronavirus newsletter

Get the day’s latest Coronavirus news delivered to your inbox by subscribing to our newsletter.