HMSA extends plan The state's largest health insurer announced yesterday that it will extend its rate discount program for members who lost health insurance in the aftermath of Sept. 11.
for laid-off workers
The Hawaii health insurer will
lengthen its rate discount program
by an additional 3 monthsBy Lyn Danninger
ldanninger@starbulletin.comHawaii Medical Service Association said it will add a further three months to the employee qualification period of its program, extending the plan to include those laid off between Sept. 11 and March 31.
HMSA will also extend the subsidy and additional month for those already enrolled in the program, to a total of four months, it said.
Employees who lost health coverage as a result of layoffs or a reduction in hours were offered a 50 percent subsidy for the first three months of the federal COBRA program, which allows workers who leave a company to pay for health insurance at the same rate as while they were employed.
A similar program was also extended to small business employees not covered by COBRA requirements. In both cases, dependent children receive coverage at no cost.
Another part of the HMSA program gave employers who contracted with HMSA to cover their employees a one-time rebate of 5 percent of their annual dues.
About 2,000 affected HMSA members have so far enrolled in the member protection program, said HMSA Vice President Cliff Cisco. That number is far fewer than HMSA originally anticipated when it set up the program, Cisco said.
HMSA had originally estimated it would spend around $50 million for the entire program, he said.
>> Qualification period -- members laid off from Sept. 11 through March 31 may enroll through their employer. Eligibility for displaced employees
>> Members laid off, or who have had their work hours reduced, need to be certified by the employer.
>> Loss of coverage needs to be as a result of Sept. 11 events.
>> Subsidy program applies when members have no other health coverage available (other than COBRA), for example, a member with no coverage through a spouse and who cannot qualify for any government coverage.
>> Subsidy includes the first four months of coverage. HMSA will pay 100 percent of premiums for dependent children and 50 percent of premiums for adults.
"The numbers haven't come close to early estimates so at this point we don't know where the end will be," he said.
But the number of applicants for the program has steadily climbed to nearly 200 a week as the delayed economic effects of the attack are felt, he said.
HMSA originally thought a three-month program would be long enough, Cisco said. But as word came in from employers that layoffs and reduced work hours would continue, it became clear that the program needed to be expanded, he said.
Cisco said the slow start was also likely affected by workers who chose to use accrued vacation time first, thereby extending health plan coverage before choosing to enroll in the program. Some may also have switched to coverage under a spouse's plan.
Of the HMSA members now enrolled in the program, 1,468 live on Oahu, 334 on Maui, 112 on the Big Island, 54 on Kauai and 6 on Molokai or Lanai.
An additional 100 of those who enrolled listed out-of-state addresses on their applications. Cisco said many of the out-of-state enrollees were likely employed by bankrupt American Classic Voyages.
The state is also providing some insurance assistance for those not eligible for the HMSA member protection program.
State Department of Health and Human Services Director Susan Chandler, said there are two possible coverage options for those without insurance.
The first, called 911-NET, is a pared down version of the state's existing Quest program. That program is available for $63 per month per person. Since few people are aware of this program, only 25 people have enrolled so far, Chandler said.
A second new program will reimburse the cost of premiums paid by eligible people who have enrolled in the federal COBRA program because of losing their employer-sponsored health coverage after Sept. 11, she said.
The program, approved during the recent special legislative session, allows for reimbursements of $125 for a single person and $315 for a family for up to three months.