Doctors group
to weigh in
on insurer
rehabilitation

Hawaii Independent
Physicians says it will
form a committee

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By Lyn Danninger
ldanninger@starbulletin.com

Hawaii Independent Physicians Association, the largest group of physicians who participate with troubled health insurer University Health Alliance, plans to form a "broad-based community committee" and seek ways to keep UHA in business.

The move is in response to state Insurance Commissioner Wayne Metcalf's decision to take over the management of the financially struggling insurer.

On Thursday, Metcalf said the state Insurance Division would spend the next 30 days assessing whether UHA can be successfully rehabilitated or whether it would have to be liquidated. But during that period Metcalf said he would be looking aggressively for potential investors who may be able to help ensure the company's survival.

Dr. Peter Galpin, vice president of the 400-member association, said his group -- one of several who initially invested in UHA when it entered into the health insurance arena -- did not intend to interfere with the Insurance Division's oversight of UHA. Instead, the physicians group may be able to tap into potential resources that could help keep the company in business, Galpin said.

"We would try to use our contacts and our expertise to provide the commissioner with alternatives and ideas and to do so quickly," he said.

Galpin said the association had already contacted a number of UHA's creditors and other stakeholders in the community who have an interest in the company's survival.

Galpin said he hopes to hold a meeting within the next 10 days for those people interested in UHA's survival.

UHA is a nonprofit mutual benefit society that provides health insurance for about 32,000 members.

The company is now $2.3 million short of the minimum level of financial reserves required by the state to do business.