Kaiser Foundation Health Plan - Competitors

Kaiser Foundation Health Plan Competition

Now Viewing Kaiser Foundation Health Plan's competition in: Managed Healthcare (primary)

Recent Developments

Electronic Prescriptions on the Way - Blue Cross and Blue Shield of Massachusetts has announced a mandatory program for doctors to use electronic prescription software by 2011, or they won't receive insurer bonuses. The systems are expensive, and Blue Cross plans to share costs with doctors. The company is also working with federal regulators, as some drugs can't be prescribed electronically due to their status as controlled substances.

Changing Nature of Employer Healthcare - Companies providing healthcare to employees will push more of the costs to employees in 2009 than in 2008, according to Hewitt Associates. Employee, or "out-of-pocket," expenses include costs such as co-payments. Out-of-pocket expenses will rise over 10 percent in 2009 compared to 2008, which is less than the increase in costs that employers will pay to their managed healthcare companies.

Insurance Companies Navigating New Florida Law - Legislation in Florida now allows people under 30 to stay on their parents' health insurance plans, with certain restrictions. The law concerns some experts who fear that employers will see managed healthcare costs rise significantly, causing potential problems in an already tight economy. At least one major managed healthcare company isn't participating due to concerns over specifics.

Competitive Landscape

Demand is driven by the rising costs of providing medical care. The profitability of individual companies depends on efficient operations and the ability to negotiate favorable contracts with healthcare providers. Large companies and organizations have advantages in negotiating contracts with healthcare providers. Small companies can compete successfully only by providing special coverage plans, or in small markets. The industry is highly automated: annual revenue per employee is close to $1 million.

Full Industry Overview For Managed Healthcare

Managed Healthcare Industry Forecast

from Hoover's/D&B subsidiary First Research

US personal consumption expenditures on health insurance premiums, an indicator for managed healthcare services, are forecast to grow at an annual compounded rate of 2.5 percent between 2008 and 2013.

Consumer Spending Growth on Health Insurance Premiums Steady

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.