Health insurers have wait
for news on rates

Both HMSA and Kaiser are seeking
the state’s approval for higher rates

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By Lyn Danninger
ldanninger@starbulletin.com

Hawaii health insurers, now subject to a rate regulation bill enacted by the Legislature last year, will likely have to wait at least until the end of March to find out if increases they want to pass on to their customers will be accepted by the state's Insurance Division.

Insurers had 30 days to file their proposed premiums with the division after the law became effective Jan. 1. The division must approve or disapprove the new rates within 90 days of the insurers' filing.

Kaiser Permanente filed its new rates on New Year's Eve, said Claudia Schmidt, director of business development for the organization.

According the filing with the insurance division, the rate for its most popular medical plan will increase by almost 9 percent, bringing the cost of a basic single plan to $186.87 a month.

Officials from the Insurance Division were reluctant to comment on either the new process or whether their rates are likely to be approved.

"At this point, we can't comment on the process itself," said acting Insurance Commissioner Gordon Ito.

But because state law also requires insurers to submit new rates to their customers at least 60 days before the rate becomes effective, some groups are already paying the new rates even though they have not been approved by the division.

Such is the case for HMSA, whose approximately 5 percent rate increase for its smaller groups went into effect July 1, 2002, but will still need approval.

HMSA's medical-only plan was $193.12 a month. HMSA must also make an additional filing this month for its larger groups whose rates changed Jan. 1.

Kaiser's Schmidt said she feels that because the law just came into effect, the delay in approval is likely a one-time event.

"I think this is unique. I'm sure that the cycling will shift after this first time around," she said. "It's a brand new law, a new process and also a brand new administration,"

Schmidt also said Kaiser would not comment on any rate changes until it gets the go-ahead from the Insurance Division.

"We are releasing no data until the department gives us a decision even though we have had to give customers prices already," she said.

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HMSA
Kaiser Permanente