Kaiser Permanente, the California-based health care and insurance provider, says it will acquire another major insurer in Washington state, Group Health Cooperative.
The proposed deal announced Friday would add about 590,000 members to Kaiser, which already serves more than 10 million people in eight states and Washington, D.C., 7.8 million of them in California. Both insurers are nonprofits which feature integrated systems of health care where they provide insurance and health care providers in one system.
In a joint statement, the companies said the proceeds of the deal, about $1.8 billion, will fund a new, nonprofit foundation, "with the goal of improving community health."
Officials said no immediate changes are planned in coverage and care for current Group Health members. The transaction is subject to approval by Group Health's voting membership and by regulators.
"This agreement is a natural extension of our long, successful working relationship with Group Health and it provides us with the opportunity to expand access to high-quality, affordable care and coverage," Bernard J. Tyson, CEO of Kaiser Foundation Health Plan and Hospitals, said in a statement, and called the two organizations "a natural fit."