June 18, 2019

Building a sustainable future together

In our current negotiations with the Coalition of Kaiser Permanente Unions, Kaiser Permanente is proposing a few new changes to our total rewards package. Most of these changes would only impact the benefits offered to future employees — and the changes proposed for future employees reflect the new realities of the highly competitive health care marketplace.

Kaiser Permanente’s proposals are designed to balance two imperatives: a market-leading package of pay and benefits, while ensuring we offer high-quality, affordable health care to our members and patients.

The proposal includes three main components:

  • We’re offering pay increases; we want to attract and retain the best people in health care.
  • For current employees, we’re proposing one benefit change: a $20 copay for office visits (copays for other services may vary).
  • For future employees, we’re proposing an updated package of benefits that better aligns with the market; the package is designed to ensure we continue to offer market-leading pay and benefits.

To help explain our proposal, see details below showing what will be different for current employees and explaining the benefit package changes for future employees

How it would work

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Under our proposal, the office visit copay would increase to $20* starting in 2021.

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Higher copays would mean an average employee’s out-of-pocket health care costs would increase by a small percentage of his or her income per year.

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Higher copays would mean an average employee’s out-of-pocket health care costs would increase by a small percentage of his or her income per year.

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The intended annual pay increase would start in 2019 and continue through the end of the contract. That means an average employee would get a pay increase before the proposed copays kick in, another increase the year they would take effect, and additional increases for the term of the contract.

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A pay increase every year for the term of the contract would add up to a significant amount, both for employees in the top step of their pay range and for employees making step advancements. Employees making step advancements would see an even larger percentage increase of their pay by the end of the contract term than top step employees (step promotions plus an annual increase each year).

Future employee benefits

There are a lot of reasons why people join the Kaiser Permanente team. For some, it’s to achieve a personal goal or advance their career. For others, it’s because we offer great pay and benefits. Whatever your reason for being here, we are proud to offer you a total rewards package that outshines the competition.

We are committed to offering you and future employees amazing benefits. We are also committed to creating a sustainable future — for you, for our members and patients, and for Kaiser Permanente. To do this, we are proposing some adjustments to the benefits of future employees.

Proposed changes

For you

There will be no changes to benefits for current employees aside from these two items.

For future employees

Starting in 2021 for new hires

PAY → INCREASING YOUR PAY. Current employees would receive a raise every year for the term of the contract.

PAY → Adjusting future employee pay ranges to better reflect the market.

ACTIVE MEDICAL COPAY → The office visit copay you pay currently would increase to $20. See Building a Sustainable Future Together: Health Care Costs.

RETIREMENT PLAN → Switching to a Defined Contribution Retirement Plan (Future Employee DC Only Plan) with a market-leading employer contribution.

RETIREE MEDICAL → Offering a Health Reimbursement Account (HRA) — comparable to what we currently offer — to pay medical expenses in retirement, based on years of service.

TIME OFF → Adjusting time off to better reflect the market.

ACTIVE MEDICAL COPAY → The office visit copay you pay currently would increase to $20. See Building a Sustainable Future Together: Health Care Costs.