Value-based care designed to deliver maximum cost savings

Integrated care and coverage that optimizes workforce health

At Kaiser Permanente, primary care, specialty care, pharmacy, labs, medical facilities, and health plans all work together in one coordinated and connected system. This eliminates the redundancies and inefficiencies that are so prevalent in other health care organizations — and creates cost-saving opportunities our competitors simply cannot match.

Plus, our incentives align with yours. Our doctors are rewarded for providing the right care — not more care. That means their sole motivation is to achieve the healthiest outcomes — for every member, at stage of life, and in every level of care.

Superior preventive care — the key to substantial cost savings

Our system is designed to identify potential risks and diagnose existing health issues before they become serious and costly. Through proactive screening, prevention, and early intervention, we help employees better manage chronic conditions and serious illnesses — or even avoid them altogether.

Plus, embedded electronic alerts remind care teams and members about upcoming or overdue screenings — so even if an employee can’t remember when they had their last screening, they’ll know when they need a new one. And data from more than 12 million members helps us continuously optimize our preventive care practices and spread them quickly across Kaiser Permanente — resulting in unrivaled population health management capabilities that help minimize employer cost and maximize employee health.

Better prevention in action

High blood pressure control — Annual medical costs are $7,418 higher for employees with high blood pressure.¹ Nearly 8 in 10 Kaiser Permanente members with hypertension have it under control — 25% above the national average.²

Cancer screenings — Compared to the national average, our screening rates are 8% higher for breast cancer, 12% higher for cervical cancer, and 18% higher for colorectal cancer.³ This helps us spot cancer sooner and start evidence-based treatment earlier, reducing the need for costly and invasive treatments, and supporting healthier outcomes.

An integrated pharmacy offering massive cost-saving potential

Our integrated model means we oversee the entire pharmacy process, from formulary composition to procurement to dispensing. This structure helps us better control drug costs while maintaining excellent quality — and we pass the savings on to our members and customers.

Unrivaled purchasing power

When it comes to negotiating pharmaceutical prices, size means leverage. We use our size to your advantage, securing best-in-class lower prices from major pharmaceutical vendors.

A cost-efficient approach

• Each 0.1% increase in generic drug utilization can achieve a massive $28 million in savings.¹⁴ Generics take priority in our formulary, accounting for 94% of our prescriptions — notably higher than the U.S. average of 90%.¹⁵
• Biosimilars cost more than 50% less than brand biologics, and we adopt them faster than other providers.¹⁶ For example, we achieved 90% adoption of Amjevita, the highly anticipated biosimilar for notoriously costly Humira, within a month of its release — and this is projected to save $300M in 2023 alone.¹⁷ Outside Kaiser Permanente, adoption remains less than 10%.¹⁸

The right health care partner makes all the difference

When it comes to health care, some businesses see consistent return on their investment, while others spend countless dollars trying to make up for the areas where their health plans fall short. Kaiser Permanente has a proven track record of keeping costs down and quality high — consistently delivering better care, better value, and better outcomes. When choosing your health care partner, remember that we’re built to raise the bar for what you can expect from your health plan.