Kaiser Permanente (KP) would appear to be the frontrunner to head up the government-administered Medicare buy-in plan devised by Senate Democrats, especially since the company was ranked as the number one Medicare plan in November. In addition, KP–in compliance with the Obama agenda to have all medical records electronic by 2014–has heavily invested in electronic medical records (EMR) and has even linked two of the largest electronic medical record systems in the country–allowing doctors and nurses at Kaiser and VA hospitals and clinics in San Diego county to access certain information about patients who receive care from both health systems. KP’s merging of the two systems also can be thought of as the flagship model for EMR convergence, leading to an EMR platform under a single-payer, universal health system.

With this type of progress and plan ratings, KP would be a natural fit and even help facilitate the transition to a single-payer system. Even the Democrats in the Senate seem to think that, after demonizing the insurance companies, they could overlook the insurance industry’s greed and other flaws and have them run their new compromise “non-public” option plan.

Furthermore, KP’s chairman and CEO George Halvorson, who took the helm in 2002, has met with Obama and has had several meetings with key figures in the health care debate, including:

March 27–Meeting with Keith Fontenot, who manages the financial resources of government agencies related to health. He oversees funds for Medicare, Medicaid, all U.S. public health agencies, and the entire Health and Human Services Department, from the Food and Drug Administration to the National Institutes of Health.

June 5–Meeting with Peter Orszag, director of the CBO.

July 23–Meeting with Kathleen Sibelius, Secretary of Health and Human Services (HHS)

July 24–Meeting with Sarah Fenn, who is a $36,000-a-year White House assistant. Fenn is an attorney and also served as the state legal Voter Protection Director for the Obama campaign in Indiana, Kentucky, and New Hampshire, as well as campaign field staff in Iowa, Idaho, Texas, and Florida.

Halvorson was the only insurance executive to meet with Sebelius.

If KP were to administer the government buy-in plan, then what about KP’s very disturbing patterns in business practices and ethics. KP was fined $1.9 million for Medicare and Medicaid fraud in Hawaii. KP also gave Bayer advice on how to go about a private-labeling scheme to defraud Medicaid of millions. This scheme led to a $257 million settlement in 2003, after being charged by federal investigators with overcharging for the antibiotic Cipro. Also involved in this type of relabeling scheme was GlaxoSmithKline and its relabeling of the drug Flonase, a nasal spray, and Paxil, an anti-depressant for KP. Flonase was manufactured and sold by Glaxo Wellcome and Paxil was manufactured and sold by SmithKline Beecham; the two companies merged and became GlaxoSmithKline in December 2001.

In addition to fraud, according to a KP watchdog website, KP has a very dark past littered with lawsuits, care denials, and patient deaths, including infants. Regardless of how KP got to those numbers securing a number one ranking, other rankings give KP a one-star rating–denoting worse than average patient outcomes.

KP also has a patient dumping problem under Halvorson.

Moreover, the testimony of patients and former KP physicians speak for themselves, and in an effort to change their poor public image, KP signed a $40 million deal with Campbell Ewald in 2004 to launch a multi-year, $40 million image campaign intended to reverse a slide in membership. However, KP can try to cover up its dangerous practices with a slick marketing campaign, but their problems persist, and in recent news, KP has had many serious accusations and problems leveled against it:

From the KaiserVictims.org website:

Kaiser Permanente fined for breach of privacy

(May 15, 2009) Kaiser Permanente fined $250,000 by the state for

illegally viewing medical records. Almost two dozen workers including doctors were involved

in this improper access. Via CNN.com

Electronic Medical Records can be deadly

(April 28, 2009) What happens when a software error miscalculates dosage?

The software manufacturer takes no responsibility and innocent lives are at risk.

Much care and major improvements deemed necessary for EMR that Obama is pushing for. Via Denver Channel

Kaiser Colorado Dollar Reserves Found Excessive For Non-Profit

(June 24, 2008) Kaiser Permanente will return $155 Million to clients in Colorado.

Deal reached between state insurance commissioner and hospital with payments spread over three years. Via The Denver Post

Kaiser Sued For AIDS Discrimination

(June 5, 2008) Lawsuit details ‘toxic’ work environment and a corporate

culture that is an antithesis of the Thrive marketing plan. Via The Examiner

Kaiser Surgeon Gets Six Months

(May 9, 2008) A Kaiser Permanente surgeon has been sentenced for perjury.

Apparently same surgeon was addicted to cocaine for several years while performing duties at Kaiser. Via SF Chronicle

Kaiser among insurers ordered to reinstate canceled coverage

(April 18, 2008) The Department of Managed Health Care ordered insurers to reinstate coverage for 26 cases where the consumers were clearly innocent and coverage had been rescinded wrongfully. Via SF Chronicle

Kaiser Permanente doctor in unprecedented criminal case

(March 23, 2008) A Kaiser Permanente surgeon accused of ‘hastening’ death of a patient is awaiting a criminal trial. Via Ventura County Star

Kaiser Permanente doctor suspended

(March 1, 2008) The hospital suspends its perinatologist Hamid Safari.

Safari is alleged to be responsible for two infant deaths. Via LA Times

Federal Health Inspectors Criticize Kaiser for Lack of Action

(January 26, 2008) According to federal health inspectors two babies may still be alive today if Kaiser Permanente had acted on staff complaints. Via LA Times

Patient Allegedly Dumped by Kaiser Facility Dies

(December 21, 2007) A Livermore man that was in Kaiser’s care was discharged and dropped off at a homeless shelter. His family searched for him for 16 days before he was found and then admitted into Kaiser intensive care, where he passed away. Via Allbusiness.com

Kaiser Refuses to Cover Cancer Patient

(December 15, 2007) Mill Valley resident and Sonoma Country Deputy District Attorney

had asked for a biopsy at Kaiser Permanente, but they did not do it. She now has Stage 4 breast cancer. Hope in the form of a clinical trial has been presented to her by M.D. Anderson doctors, whom she turned to, being dissatisfied with Kaiser Permanente. Kaiser has denied her request for coverage. Via San Francisco Chronicle

Kaiser to pay $1.8 Million in Malpractice case

(December 12, 2007) A 45-year-old man was misdiagnosed at Kaiser Permanente

and suffered permanent brain damage. Via OC Register

Drug Allergy Death at Kaiser

(November 29, 2007) Family of woman that died of an allergic reaction has filed a claim

against Kaiser Permanente for failing to recognize and treat her allergic reaction

Via mddailyrecord.com

Health Insurer bonuses tied to policy cancellations

(November 16, 2007) Health Net Inc was fined $1 Million for withholding information. The insurer lied to investigators about tying employee bonuses to the number of contracts canceled after policy holders got sick. It is under investigation along with Kaiser Permanente (who paid $325,000 in fines), PacifiCare and Blue Shield of California. Via sfgate.com

Finally, the Senate has played the American people with this so-called compromise. Even if they strip it out, the compromise is still disingenuous, because the powers that be can lower the age requirement through other means. Understand that lawmakers will propose the mother of all legislation, then settle for exactly what they want. Oldest trick in the political playbook. Progressives have wanted the Medicare age to drop to 55 for years. In addition, to know that KP executives are major players in healthcare reform is disturbing.

To think what a $40 billion non-profit insurance company could do to the US healthcare system–knowing what they have already done and continue to do should send a shiver down your spine.