HMSA files About 140 large employer groups who have insurance coverage with the state's largest insurer, Hawaii Medical Service Association, will see average premium increases of 5.8 percent if the latest rates are approved by the state's Insurance Division, the company said yesterday.
to raise rates
for large firms
Those with renewal dates
on Jan. 1 will see
an average 5.8% hike
By Lyn Danninger
ldanninger@starbulletin.comThe division has 90 days to either approve or reject the rate filings.
HMSA submitted rate filings to the state Insurance Division Friday for its large groups whose plans renewed Jan. 1.
Remaining large employer groups not included in this filing with the division renew their contracts at various times throughout the year, said Steve Ribbink, HMSA senior vice president and chief financial officer.
Taken as a whole, the average rate increase for HMSA's combined group of 300 large employers would be 9.2 percent, Van Ribbink said. The groups consist of businesses with 100 or more employees.
The groups are enrolled in HMSA's dominant preferred provider plan, although not all groups have identical plans, Van Ribbink said.
Larger groups may choose to add a variety of riders HMSA offers, such as drug, dental or vision coverage, he said.
Van Ribbink said average rate increases for the large groups were more modest this year in comparison with last year, when many groups had substantially larger increases.
"The average rate increase last year was about 14.5 percent. We took corrective action back then to get them more in line. We were pleased with what we were able to do (this year). Considering what's happening elsewhere in the nation, 5.8 percent is pretty good," he said.
HMSA also submitted rate filings for a number of individual plans it offers. Those plans cover about 8,900 people enrolled in about 12 different types of plans, including students, seniors and sole proprietors.
HMSA's 50-plus plan for seniors saw a 16 percent increase. New rates for a single individual covered on that plan would increase to $306.75.
Some groups, such as the HMSA Children's Plan, known as CHIP, which provides limited coverage to uninsured children who are not eligible for Medicaid or the Quest program, saw a premium decrease.
The children's plan decreased by 17.1 percent, which brought rates down to $48.50 a month per child, Van Ribbink said.
HMSA said it also plans to submit additional filings soon for its large groups who also offer employees health maintenance organization plans as well as the preferred provider plan, Van Ribbink said.
Because state law requires insurers to submit new rates to their customers at least 60 days before the rate becomes effective, groups have already received their new rates.
Hawaii's other large health plan, Kaiser Permanente, recently filed for a 9 percent increase with the division for its most popular medical plan.
Insurers had 30 days to file their proposed premiums with the Insurance Division after a bill regulating the rates became effective Jan. 1.