Kaiser opens health insurance storefront in Modesto

Nov. 30--In a row of storefronts between Fuddruckers and Walmart on McHenry Avenue, a major insurer is selling a government-mandated product that's created quite a buzz this fall.

Kaiser Permanente chose the North Point Landing shopping center in north Modesto for one of its Shop KP stores, billed as a new way for consumers to shop for medical coverage.

Its customers might include first-time buyers of health insurance. Others who walk in might be hot under the collar after their insurance was canceled because it did not meet all standards of the Affordable Care Act. Starting in January, the federal law will require people to be insured or pay a tax penalty.

The Shop KP store has iPads and personal computers mounted on tables, where staff members help customers look for plans on the Covered California health exchange or directly from Kaiser. Those who wish to start the enrollment process, or apply for tax credits to lower premiums, can sit down with staff in private cubicles.

Besides the Modesto store, Kaiser opened outlets this fall in malls and other retail centers in Sacramento, Fresno and the Bay Area. Another is expected to open in Stockton in December. The stores will remain in operation at least through 2014, the insurer said.

Corwin Harper, area manager for Kaiser's Central Valley region, said the Modesto location was chosen for the large amount of foot traffic at North Point Landing. "It's a convenient place for people to go to learn information: What is the Affordable Care Act? And what does it mean to them?" Harper said.

Jesse Montoya was a self-employed insurance broker in the Livermore area for 14 years before taking a job as a retail supervisor for Kaiser. He and other staff took 40 hours of training to become certified brokers for Covered California, the state-run exchange created to administer the Affordable Care Act.

Montoya said the Kaiser stores were especially designed for uninsured people who are facing the individual mandate of the law, which prohibits denial of coverage based on a pre-existing health condition.

Compared with calling or filing online with Covered California, a store offers face-to-face contact and a secure setting for sharing personal information, Montoya said. He added the store has bilingual customer service agents.

"Some of the people who come in are confused about the Affordable Care Act," the supervisor said. "They want to know how it works and how they can get coverage. We do a thorough job of explaining the law."

Trish Spears of Ceres said she needed a new plan for next year after her current one was canceled. She first tried to enroll with a broker who was waiting to be certified and then went to member services at Kaiser's Modesto hospital, which pointed her to the KP store.

"I thought it was a convenient one-stop, and I like talking to a person," Spears said. She signed up for a new plan costing more per month and requiring higher co-payments, but she was eligible for a subsidy, she said.

Montoya said a few store visitors have volunteered their political views about the federal program.

Kaiser did not release enrollment figures for the Modesto store, which opened Oct. 1. The insurer also is taking a mobile center equipped with computer stations to health fairs, farmers markets and similar events.

Two of Kaiser's competitors, Anthem Blue Cross and Blue Shield of California, said they had no plans to open insurance stores in shopping malls.

"Anthem uses the more traditional routes of agents and brokers, along with our website and telephone sales," spokesman Darrel Ng said. He noted that Anthem has been the top choice for people who have chosen health plans on the state exchange.

In October, 8,678 people chose Anthem plans through the statewide exchange, compared with 8,250 for Kaiser, 7,903 for Blue Shield and 4,839 for Health Net.

Bee staff writer Ken Carlson can be reached at kcarlson@modbee.com or (209) 578-2321.

___

(c)2013 The Modesto Bee (Modesto, Calif.)

Visit The Modesto Bee (Modesto, Calif.) at www.modbee.com

Distributed by MCT Information Services