Review of the Prescription Drug Additional Benefit Offered By Kaiser Foundation Health Plan, Southern California in the Calendar Year 2000 Adjusted Community Rate Proposal

EXECUTIVE SUMMARY:

The objective of this review was to assess whether Kaiser properly valued and reported the prescription drug additional benefit in the Calendar Year 2000 Adjusted Community Rate Proposal.  Our review found that Kaiser paid less than the average manufacturer price for the prescription drugs we reviewed and, therefore, properly valued those drugs.  Additionally, we found the prescription drug additional benefit reported in the Calendar Year 2000 Adjusted Community Rate Proposal was properly based on actual costs.