State legislators continue to question HPH-HMSA deal
State lawmakers still had many questions Wednesday over the proposed partnership between Hawaii’s largest health insurer and one of its largest health care systems.
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.
insurance company and a medical provider would exist in the same entity.
“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 in January shortly after the partnership was first announced. Since then, HMSA and HPH have filed documents with the
are under review. Other
regulatory approvals are underway by the state insurance commissioner, the state
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 , 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.
management or prior
authorizations, he said, and “bend the cost curve” of rising insurance costs.
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 Hawaii’s primary care providers or private practice physicians.
“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 ownagainst 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 , 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.
© 2026 The Honolulu Star-Advertiser. Visit www.staradvertiser.com. Distributed by Tribune Content Agency, LLC.



Shares of Health Insurers Rally After CMS Bumps Up 2027 Rates
Shares of Health Insurers Rally After CMS Bumps Up 2027 Rates
Advisor News
- The modern advisor: Merging income, insurance, and investments
- Financial shocks, caregiving gaps and inflation pressures persist
- Americans unprepared for increased longevity
- More investors will seek comprehensive financial planning
- Midlife planning for women: why it matters and how advisors should adapt
More Advisor NewsAnnuity News
- LIMRA: Annuity sales notch 10th consecutive $100B+ quarter
- AIG to sell remaining shares in Corebridge Financial
- Corebridge Financial, Equitable Holdings post Q1 earnings as merger looms
- AM Best Assigns Credit Ratings to Calix Re Limited
- Transamerica introduces new RILA with optional income features
More Annuity NewsHealth/Employee Benefits News
- Rob Schofield: NC’s new Medicaid ‘compromise’ comes at a cost
- We have to stop this with our votes | RODNEY WALKER
- MCCLELLAN INTRODUCES BILL TO HELP VIRGINIANS KEEP THEIR MEDICAID COVERAGE
- The Spine of Justice Roberts
- SENATE APPROVES BILL TO LIMIT PREMIUM INCREASES, PROTECT ACCESS TO HEALTHCARE
More Health/Employee Benefits NewsLife Insurance News
- 2025 Insurance Abstracts
- AM Best Assigns Credit Ratings to Tokio Marine Newa Insurance Co., Ltd.
- Earnings roundup: Prudential works to save ‘unique’ Japanese market
- How life insurance became a living-benefits strategy
- Financial Focus : Keep your beneficiary choices up to date
More Life Insurance News