Kaiser Permanente, often referred to as simply Kaiser, is based in Oakland, California, and was founded in 1945 by industrialist Henry J. Kaiser and physician Sidney Garfield.
Kaiser Permanente is made up of three interdependent entities to form an integrated managed care consortium. These groups, or organizations, are the Kaiser Foundation Health Plan, Inc. (KFHP) and its regional operating subsidiaries – the Kaiser Foundation Hospitals, and the regional Permanente Medical Groups.
Unlike many of the major health insurance coverage providers, Kaiser Permanente is not found in every state nor even in most states. In fact, outside of California, Kaiser Permanente only serves members in Colorado, the District of Columbia, Georgia, Hawaii, Maryland, Oregon, Virginia, and Washington.
However, their customer base of members is close to 13 million people, and they are the largest managed care organization in the U.S.
Kaiser Permanente: Spotlight on California
Currently in California, Kaiser Permanente has 9 million enrollees or members, which is close to a quarter of all Californians. In fact, Kaiser is the state’s largest managed-care organization.
In addition to being headquartered in California and only a few hours from the state capital, Kaiser Permanente has made it a point to contribute to the health-related welfare of California residents in programs that benefit all Californians, not just Kaiser members.
According to a recent news story,
“In 2020, KP gave $25 million to one of Newsom’s key initiatives, a state homelessness fund to move people off the streets and into hotel rooms, according to a KHN analysis of charitable payments filed with the California Fair Political Practices Commission. The same year, it donated $9.75 million to a state covid relief fund.”
However, the same story relates that a special arrangement that allows Kaiser Permanente to limit Medi-Cal (California’s Medicaid health care program) enrollment primarily to its previous enrollees, except in the case of foster kids and people who are eligible for both Medicare and Medi-Cal.
Opponents to this deal include other managed-care insurance plans in Medi-Cal who have argued that they are at risk of losing hundreds of thousands of patients and millions of dollars a year as a result.
In a recent Kaiser press release, the managed-care health giant announced an expanded portfolio of virtual plan options for 2022. These include a new small business employer plans through their Virtual Forward for Small Group and plans for individuals and families through their KPIF program.
Kaiser Permanente in 2022: What is Still Great
Kaiser has had its share of worker strikes, lawsuits, and difficulties with other managed-care providers, but it is still considered one of the best health plans out there by a majority of its members.
As personal finance website ValuePenguin relates,
“Kaiser Permanente has consistently received top ratings for its individual insurance and Medicare plans, often ranking far ahead of any competitors. It has a unique model of having insurance and medical care as branches of the same company. This is great for those who want a streamlined experience between health insurance and health care, but these policies are not a good fit for those who want flexibility when choosing their health care providers.”
The website’s review of Kaiser Permanente goes on to note that Kaiser has repeatedly been named as one of the best health insurance providers in the country. Both HealthCare.gov and Medicare.gov give Kaiser’s plans rankings of 4 to 5 stars. This is consistently higher than most other major insurance companies operating in the United States.
Another great benefit for many members is that their insurance coverage works hand-in-hand with all of Kaiser’s hospitals and medical centers. This means a much more streamlined approach for your claims and coverage process.
This also allows Kaiser’s to keep their costs low so that it can offer its members affordable plans.
However, it is both the comprehensive managed-care aspect and its limited coverage that represent real downsides for many who would prefer to have Kaiser Permanente for their health coverage.
Along with being limited to just those members living in eight states and the District of Columbia, another one of the biggest downsides of Kaiser health insurance is that most of their plans have no out-of-network coverage except in the case of urgent care visits or emergencies.
J.C. Lewis Insurance: When You Need Health Insurance Advice and Guidance
JC Lewis Insurance offers quality health insurance plans only from the leading health insurance carriers licensed to do business in the states that we operate in.
We are a family-owned and operated California health insurance agent located in Sonoma County and we specialize in helping find and manage medical insurance plans for small businesses, as well as for individuals and families, and for people with Medicare.
Not only are we expert brokers, but we are also licensed and certified by each of these insurance carriers to offer coverage to individuals, families, and small group employers in addition to Medicare supplemental and prescription drug plans for seniors.
For small business owners and employers wanting to offer health coverage benefits, we are both and experienced and highly respected guide in that arena, as well.
If you are self-employed, or your employer doesn’t provide health benefits, an individual or family plan may be the best option for you or you and your family.
And if you are looking to purchase medical insurance for you and your family, you will likely have many questions and concerns. Bring your questions about health coverage insurance and you can be confident that JC Lewis Insurance Services will help you find the right solution.
Kaiser Permanente in 2025: The Balancing Act Between Innovation and Accessibility
Let’s call it like it is — Kaiser Permanente is still the heavyweight champion of California’s health insurance scene, but not without controversy. In 2025, Kaiser continues to dominate with over 9.3 million members in California alone, maintaining its status as the state’s largest managed-care organization. However, as the healthcare landscape becomes more competitive and tech-driven, Kaiser’s model faces new scrutiny.
On one hand, its integrated care system — where doctors, hospitals, and insurance all operate under one umbrella — continues to deliver high patient satisfaction scores, averaging 4.5 out of 5 stars on Medicare.gov. On the other hand, critics argue that Kaiser’s limited out-of-network flexibility still boxes members into a “Kaiser-only” ecosystem, which can be frustrating for those seeking specialized care outside their network. In short: Kaiser’s efficiency is both its greatest strength and its biggest limitation.
The Rise of Virtual-First Healthcare Plans
If there’s one undeniable trend reshaping Kaiser Permanente in 2025, it’s the rise of virtual-first health insurance plans. What started with their Virtual Forward for Small Groups in 2022 has evolved into a full-fledged care model. Now, members can choose digital-first health plans that prioritize telehealth consultations, AI-driven symptom checkers, and integrated digital pharmacies.
This model fits perfectly in post-pandemic California, where small businesses are embracing remote and hybrid work. For many, Kaiser’s digital health ecosystem offers the convenience employees crave — 24/7 virtual visits, same-day prescriptions, and streamlined referrals without ever stepping foot in a clinic.
But let’s not sugarcoat it — skeptics worry that virtual-first care could widen the gap for those needing in-person medical attention. While digital options are efficient, they can’t replace hands-on diagnostics or complex procedures. The key challenge for Kaiser in 2025 is finding balance: embracing digital transformation without alienating members who still value face-to-face healthcare.
Small Businesses and Kaiser: The 2025 Advantage
For small businesses navigating California’s pricey healthcare market, Kaiser Permanente remains a go-to solution for group health coverage. Why? Predictability. With fixed monthly rates, comprehensive preventive care, and integrated wellness programs, Kaiser still offers one of the most cost-effective options for employers looking to retain talent.
According to a 2025 Business Insider analysis, small employers using Kaiser group plans saw an average 11% reduction in annual healthcare costs compared to similar PPO plans. Add in Kaiser’s employee wellness incentives — like subsidized gym memberships and stress management resources — and the benefits extend far beyond basic coverage.
Still, it’s not a perfect fit for every company. Businesses with remote employees scattered outside Kaiser’s limited service areas may find its coverage footprint too restrictive. That’s where independent brokers like J.C. Lewis Insurance Services step in — helping companies compare Kaiser Permanente small business plans with alternative PPO or HMO networks to find the right balance of affordability and flexibility.
Making Smarter Health Coverage Decisions in 2025
Healthcare in 2025 isn’t just about finding insurance — it’s about strategic coverage design. Whether you’re an individual, family, or small business owner, the key is aligning your health plan with how you actually live and work. For Californians, Kaiser Permanente remains a strong contender, especially for those who value integration, convenience, and predictable costs.
However, for those craving broader flexibility or multi-state coverage, exploring other California health insurance options through expert brokers like J.C. Lewis Insurance is a smart move. They can help you weigh the pros and cons — from Kaiser’s managed-care structure to more open PPO networks — ensuring your coverage supports both your health and your bottom line.
Because in 2025, healthcare isn’t just a benefit. It’s a business decision.