Kaiser requests 8% health insurance rate hike from Ore. regulator. To affect 10,978.

DCBS:

Rate Request: • Proposed rate increase: 8 percent for all populations from one year earlier. • Effective date: 01/01/2011 • Oregonians impacted: 10,978...

Basis for rate request • Medical and prescription costs: Medical costs are expected to increase by 6.5 percent between 2010 and 2011 and prescription costs are expected to increase by 6.5 percent during the same period.

• Medical and prescription benefits: Benefit changes have been made to some of Kaiser’s Individual plans. The changes are detailed in the Covered Benefit or Plan Design Changes document.

Premiums vs. claims (4/2009-3/2010) • Individual health plan premiums received: $23,929,901 • Individual health plan claims paid: - $18,786,737 • Individual health plan administrative costs: - $ 3,710,194 • Individual health plan medical profit: $ 1,432,969

Five-year rate history • 10/1/2006: 12.8% Increase • 10/1/2007: 7.3% Increase • 10/1/2008: 6.5% Increase • 10/1/2009: 9.6% Increase (15-month rate) • 1/1/2011: 8.0% Increase (requested)

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