Budgeting
This is an 8% decline following the expiration of pandemic-era policies that temporarily increased star ratings for some plans.
2025 would be the third consecutive year of health benefit cost increases above 5%, following a decade of about 3% increases.
Compensation increased more than 5% for many specialties but only increased 3.6% among primary care specialties.
The company maintained a strong balance sheet, with $11 billion in cash and investments, and net assets of $10 billion.
Healthcare bankruptcies are currently on track to see 58 cases by the end of this year, a 27% decline from the 79 cases filed in 2023.
Kaiser reported operating revenues of $29.1 billion and operating expenses of $28.2 billion during the quarter.
A new survey identifies a number of key strategies hospital and health system leaders are exploring to mitigate financial pressures.
Insurance revenue during the second quarter grew 11% to $349.9 million, driven by strong member retention and intra-year growth.
CEO Jim Rechtin said a "challenging external environment" is preventing the company from reaching its full potential.
The median, year-to-date health system operating margin held steady at 2.3% for a second consecutive month in June.