Cayetano makes
pitch for 2 bills

He says the state should oversee
health plan rates, gas prices

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By Lyn Danninger
ldanninger@starbulletin.com

Gov. Ben Cayetano yesterday said a bill giving the state oversight of the way health insurance rates are determined is the only way consumers and businesses can be assured premiums are fair.

Flanked by Attorney General Earl Anzai, state Insurance Commissioner Wayne Metcalf and Rep. Ken Hiraki at a state Capitol news conference yesterday, Cayetano described the near monopoly of Hawaii's two largest insurers, Kaiser Permanente and Hawaii Medical Service Association, as being similar to the dominance enjoyed by the state's two gasoline refineries.

With such a captive market, it is appropriate for government to step in and provide relief to consumers, he said.

Cayetano said that dominance is the reason legislators must pass the bill this session. But he said he was concerned that lobbying efforts to kill HB 1761, particularly those of HMSA, are putting its future in jeopardy.

"HMSA is respected organization," he said. "It has a board of directors who can influence people from all different perspectives, political as well as economic organizations and I think that counts for something."

Cayetano noted that by law Hawaii employers must provide insurance to their employees. Under those circumstances, the state has an obligation to ensure that health care premiums are fair, just as it does in other areas where there is a single or dominant provider of service, such as a utility like Hawaii Electric Industries, he said.

Cayetano said he hopes the bill, which will likely be discussed in conference committee today, will not eventually be watered down by legislators.

"I'm not supporting any bill that's a whitewash of the problem," he said. "I would urge the Legislature not to send something up that's not meaningful."

HMSA Vice President Cliff Cisco said the company already supplies much information to the state Insurance Division. But he is concerned the bill would mean that the company will be told what it can charge.

"We've always been willing to work with the insurance commissioner," Cisco said. "But control of the rate-setting mechanism is what concerns us."

In his comments yesterday, Cayetano also reiterated his support for the state to regulate Hawaii's high gas prices and ease the burden on consumers. Cayetano said the issue is significant enough that the state should be willing to go to court if the oil companies sue over any regulations that make it into law.

Sen. Robert Bunda, who has called for further study of the issue, has questioned whether the state should endure another long court battle against the companies.

"Let us take that risk," Cayetano said.

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