HGEA, UPW insurance
disclosure ordered

But the judge denies the state
some of the records it requested

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By Rick Daysog
rdaysog@starbulletin.com

A state judge has ordered two local insurance companies to disclose the amount of insurance premiums refunded to the Hawaii Government Employees Association and the United Public Workers union.

Circuit Judge Eden Elizabeth Hifo gave the unions' insurance administrators -- Voluntary Employees Benefits Association of Hawaii and Royal State National Insurance Co. -- until July 31 to deliver the records to the state comptroller's office.

But Hifo denied the state's broader demand for the insurance companies' contracts with health-care providers and other financial information.

Deputy Attorney General Hugh Jones said Hifo's ruling vindicates the state's position that it is entitled to financial records of the unions' health plans.

The state subpoenaed the records after it sued the HGEA and the UPW in March. The state, which is conducting an audit of the unions' health and dental plans, has argued that the HGEA and UPW have stonewalled their efforts to audit their health plans.

Under Hawaii law, the state is entitled to any refunds or credits paid to the public employees' unions for members' health-care benefits.

Hifo's ruling came on a motion to quash state subpoenas issued to VEBAH and Royal State.

Paul Schraff, attorney for VEBAH and Royal State, said the companies are not trying to hide information from the state. But he said the insurers did not want to disclose proprietary information to the state since the state's health fund is a competitor.