Kaiser Foundation Health Plan, the health insurance arm of Oakland, Calif.-based Kaiser Permanente, has formally applied to acquire Seattle-based Group Health Cooperative, according to The Seattle Times.
The two organizations signed a definitive agreement to join forces last December. Now, Kaiser Foundation Health Plan officials have submitted their takeover plan to Washington State Insurance Commissioner Mike Kreidler.
Included in the documents submitted to Mr. Kreidler is a public summary of the proposal. The rest of the application will remain confidential until Mr. Kreidler's review of the documents is complete, according to the report.
The transaction still must be approved by two-thirds of Group Health's voting members, who have until March 9 to submit ballots for or against the deal. If the transaction is turned down by the voting members, Mr. Kreidler would end his review, according to the report.
Under the deal, Kaiser would acquire Group Health for $1.8 billion. Those funds would be used to establish a new nonprofit community foundation in Seattle. Through the acquisition, Kaiser would significantly expand its geographic footprint in the state of Washington.
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