KPS Health Plans has announced that Elizabeth Gilje, President of KPS Health Plans and Northwest Credentials Verification Service, will continue to lead the Bremerton-based insurer once the company and its subsidiary become the property of Group Health Cooperative (GHC). The sale of KPS was approved by the courts Aug. 19 and closed Sept. 30.

In six years under Gilje_s leadership, the company has grown from a capital and surplus deficit of $8.6 million to over $7 million in surplus at the end of August. Membership has grown between 8 and 10 percent per year.

Based on her success in saving the company from liquidation, GHC has signed a Letter of Intent to keep Gilje at the helm until at least December 2008, with renewal periods of two years thereafter upon approval of Gilje and a new KPS Board, which will have GHC and local representation. Three members of the current Interim Advisory Board will remain on the new board. Gilje will report directly to the new KPS Board.

“Group Health will be a good parent company for KPS,” said Gilje. “Group Health offers HMO and Point-of-Service products and KPS offers distinctively different PPO products, including products with financial incentives, such as HSAs. KPS operations will not be subsumed in the parent company operations, as could have been the situation with a different choice of parent company. KPS will continue to offer top-rated customer service and distinctive PPO products to a broader Washington market. KPS is emerging from Receivership stronger in every area of our business. All of us at KPS deeply appreciate what the local physicians and providers have given to KPS over the many years of operations, and our management team fully intends to continue to listen to and respect the advice of our local physicians.”

While membership has decreased since the surprise announcement of the sale to GHC, most subscribers have remained with KPS, and many have commented they are happy to learn that the sale will not impact their choice of doctors and their health plans will not change.

“While this period of waiting has taken its toll on the company, we are very pleased that this sale is going forward, and the time of waiting has passed” said Gilje. “You will see that KPS will not only remain in Bremerton, but we will grow significantly in staff and revenues as we develop into a state headquarters for all of our product offerings. Our current management team and staff will continue as today with no changes other than what would occur in the normal course of business. KPS is and will remain a great Kitsap-based employer.”

With an eye on the future, KPS is currently developing a new product line called “KPS Home Choice” that will offer low deductibles and maximum benefits by taking advantage of the extensive KPS network of providers within the four-county area of Kitsap, Jefferson, Clallam and Mason Counties. Subscribers of the new product will have access to the entire KPS Participating Network throughout the state of Washington and across the nation, just like any other KPS product, but they will see much lower medical costs by utilizing the KPS Home Choice Network.

“This new product is a _thank you_ to all of the local physicians, medical providers and local community residents,” said Gilje. “The plan is our way of showing our core market areas that KPS will continue to remain a key healthcare provider in the area, and we will continue to address the needs of our local members, even as we grow statewide.”.