The Kentucky Employees' Health Plan (KEHP) is a self-insured program providing health insurance benefits to the employees and retirees of the Commonwealth of Kentucky, as well as local school boards, local health departments and other quasi governmental agencies. KEHP has more than 268,000 actively participating members. KEHP also provides Flexible Benefit Plans for state and local boards of education employees.
Prior to 2006, KEHP participants paid monthly premiums to various for-profit, insurance companies. However after a hefty 52% premium increase in 2005, KEHP stopped buying health insurance from for-profit companies and created its own, non-profit, "self funded" plan. Since January 1 2006, premium contributions for KEHP participants have increased (on average ) by a little more than 7% per year-well below the national benchmark.
As a non-profit, self funded plan, KEHP is owned and operated by the Commonwealth of Kentucky. In other words KEHP is run by public employees for public employees. KEHP participants have a direct stake in the financial well-being of the plan. By adopting a healthy lifestyle, individuals can have a positive effect on not only their own healthcare cost, but also the healthcare cost of fellow KEHP participants. KEHP encourages members to adopt a healthy lifestyle. Wellness is an active process of becoming aware of and making choices towards a more healthy existence.
To help improve and maintain the health of participants, KEHP has partnered with a number of organizations including Humana, HumanaVitality, Express Scripts, Humana Chronic Condition Management, and LifeSynch. As KEHP partners, these organizations provide a variety of Wellness and other services which are completely voluntary, completely confidential and (in most cases) completely free.