EDITORIAL: More scrutiny for HMSA-HPH health care tie-up
Is it a good idea for
State Rep.
HMSA and HPH propose that they join forces under a new umbrella entity, One Health Hawaii — and argue that over time, this will improve health care for the benefit of consumers. But
A combined company would give the two partners in One Health Hawaii a cost advantage by shrinking the number of middlemen, giving HMSA an incentive to steer customers toward its "partner" and earn more per patient dollar. It could also potentially incentivize the partners to "cherry-pick" healthier patients with more money and ability to pay premiums, while leaving other hospitals responsible for the high-cost care sicker patients require. Queen's reps expressed particular concerns about this — and it would know, as Queen's takes the lion's share of uninsured emergency care patients in its emergency rooms on
It's a slippery concept. How does "better coordination" save money if processes remain the same? Apparently it's because over time, employees and administrative functions will become redundant. However, the workforce will shrink not with layoffs, but as employees retire or leave of their own volition. The tighter, more productive company would thrive, in this theoretical scene.
Partnership advocates have wasted no time in reaching out to the public: A series of TV commercials have been launched, emphasizing the high cost of health care and intimating that this partnership will do something about that.
A decidedly contrarian view was raised at the hearing by a representative for
The amount of money to be saved (or diverted) with "shared administrative costs" and "the elimination of duplication" is eye-popping: more than
Vara told legislators that the current system is "unsustainable" — with every health system and the state's two major insurance companies losing money in 2025, at the same time that insured households experienced "double-digit-plus" increases health care costs. Many would agree. The outsized expense of the
The cost and barriers to health care for Americans propelled the Affordable Care Act to passage; however, "Obamacare" left the complex network of insurers, administrators, regulators and service providers in place — with each taking a "taste" and contributing to overall costs. With a nudge from the Trump administration's removal of penalties for those who don't buy insurance, costs have continued to rise.
The health care-financial services complex is ripe for a shakeup — some of the "disruption" and elimination of waste sought by the feds this year.
Whether the HMSA-HPH partnership is


Oregon bill would require home insurers to consider wildfire prevention efforts
America's car insurance price gap: The most expensive and cheapest US cities for car insurance
Advisor News
- Semi-retirement: helping clients balance flexibility with financial security
- The 6X Formula for leveraging content marketing with AI
- When a home becomes difficult to insure, the plan changes
- The inheritance gap: Helping clients plan for money that hasn’t arrived
- After the midterms: Addressing your clients’ tax concerns
More Advisor NewsAnnuity News
- Athene CEO criticizes offshore reinsurance, risk-taking by competitors
- DOL, trade groups, state AGs file briefs supporting Alcoa in PRT lawsuit
- John Hancock launches new fixed indexed annuity suite
- Annuities to play a larger role in workplace retirement plans
- FHLBank Pittsburgh Announces Results in 2026 Board Election
More Annuity NewsHealth/Employee Benefits News
- A Miami hospital network just dropped 3 health insurance plans. See the changes
- Centene to lay off 69 employees early next year
- CVS is planning a huge corporate breakup after drug price criticism. Did Louisiana play a role?
- Health insurance premiums increase as Affordable Care Act open enrollment underway in Wisconsin
- CVS is planning a huge corporate breakup after drug price criticism. Did Louisiana play a role?
More Health/Employee Benefits NewsLife Insurance News
- AM Best Affirms Credit Ratings of Fubon Insurance Vietnam Co., Ltd.
- Three lawsuits put life insurers’ cost-of-insurance practices under scrutiny
- Military Briefs: November 12-18
- Security Benefit Series B Preferred Stock Dividend Rate Resets to 10.286%
- FHLBank Pittsburgh Announces Results in 2026 Board Election
More Life Insurance News