Hawaii legislators continue to question HPH-HMSA deal
State lawmakers still had many questions Wednesday over the proposed partnership between
They also had many lingering concerns over the impacts of
Most revolved around the potentially unfair advantage that would result from the HMSA-HPH deal, a vertical integration under a new entity, One Health Hawaii, and whether it would leave others with the burden of caring for high-cost patients and, ultimately, higher costs for everyone.
State Rep.
"I think we're all concerned that on the commercial side there are going to be incentives to essentially be cherry-picking, to siphon off healthy patients — intentionally or not — to the
HMSA insures more than 750,000 people statewide, while HPH operates major hospitals including Kapi'olani
Wednesday's briefing followed an initial one in January shortly after the partnership was first announced. Since then, HMSA and HPH have filed documents with the
HMSA and HPH have pulled out all the stops to win public support for its partnership under One Health Hawaii. In addition to television commercials, the two nonprofits have launched a website, spoken to community groups and held a virtual town hall, all touting One Health Hawaii as a path toward a more coordinated and sustainable health system.
Dr.
The partnership is projected to save more than
At the same time, it would be an open network, allowing HMSA members to continue choosing their own doctors at any hospital, and giving HPH patients the option of keeping their insurance plans.
Other health providers would be able to join as long as they agree to the network's "value-based" model of care, which ties provider payments to patient health outcomes.
Rather than a fee-for-service model, the value-based plan is a per-member-per-month, fixed amount for a set time.
HPH in 2022 adopted the value-based model and successfully lowered the rate of premium increases, according to Vara. Value-based plans, however, have not been popular with
"This is not just vertical integration or a partnership," he said. "This is a merger. So you think about the executive making decisions, you know, having one legal counsel or one CEO at the top making decisions for the two prospective organizations. To me, it's a conflict of interest."
Structurally, he said, it would be a monopoly that would give two organizations with a tremendous amount of power an advantage over competitors.
By taking lower-cost, lower-utilization patients, One Health Hawaii could keep its inflation rates low, he said, leaving other providers to care for higher-cost trauma, behavioral health and vulnerable patients.
Queen's launched its own campaign against the move, warning that it could deepen already unacceptable gaps in care in
HPH and HMSA insist this will not be the case, as other hospitals and insurance payers are invited to be part of their network.
Regulatory rules are in place to ensure fairness in the market, they said, and that is why the deal is currently undergoing review. Vara said officials from the DOJ were in
"The reality of it is, if this doesn't happen, we're essentially committing to the relative status quo," Vara said, "and that means sustained access issues, sustained unsustainable rates of increase for the cost of health insurance."
Legislators have introduced bills, including Senate Bill 3175, in response to the proposed HMSA-HPH partnership.
SB 3175 would have established state oversight of health care mergers, acquisitions and other consolidations. It would require such deals to undergo public interest review by the
The bill, introduced by state Sen.


Analysis: Fla. legal reforms deliver relief to housing costs
Illinoisans can't afford the cost of unchecked car insurance | Opinion
Advisor News
- Caregiving: A challenge that costs employers billions
- Could your practice benefit from an advisory board?
- SEC nears settlement with accused scammer Tai Lopez
- The 3 things that shrink your Social Security income
- Proposed legislation takes aim at Social Security shortfall
More Advisor NewsAnnuity News
- Globe Life Inc. (NYSE: GL) Highlighted for Surprising Price Action
- Trademark Application for “EMPOWER YOUR MONEY” Filed by Empower Annuity Insurance Company of America: Empower Annuity Insurance Company of America
- Built-in guaranteed annuities: What advisors should know
- Malibu Life Holdings Completes Acquisition of TruSpire, Establishing Malibu USA and Accelerating Entry into the U.S. Retail Annuity Market
- Why job boards are failing insurance agencies
More Annuity NewsHealth/Employee Benefits News
- Dishonest telemarketers are selling fake health insurance, leaving Minnesotans in the lurch
- NC’s State Health Plan switching who administers its members’ benefits, again
- Caregiving: A challenge that costs employers billions
- agilon health Reports ACO REACH Model Results for 2024 Performance Year
- Ohio saw the largest drop in enrollment after Trump/Republican Affordable Care Act cuts
More Health/Employee Benefits NewsLife Insurance News
- Could your practice benefit from an advisory board?
- AM Best Revises Outlooks to Stable for Missouri Farm Bureau Group’s Members and Farm Bureau Life Insurance Company of Missouri
- Globe Life Inc. (NYSE: GL) Highlighted for Surprising Price Action
- AM Best Assigns Credit Ratings to China Ping An Insurance (Hong Kong) Company Limited
- Reliance Matrix Expands Employee Navigator Integration with New Evidence of Insurability (EOI) API Enhancement
More Life Insurance News