Students criticize
26.8% rise at HMSA

The insurer cites high use in
UH and Chaminade policies

University of Hawaii and Chaminade University students have seen a 26.8 percent increase this year in the cost of a comprehensive health plan by Hawaii Medical Service Association.

The increase comes on top of last year's 4.5 percent increase for the three-year UH-Chaminade plan that began in August 2003, according to Cliff Cisco, HMSA senior vice president.

Cisco said students "are using the services faster than anticipated."

The comprehensive student medical plan, including vision and drug coverage, costs $607.37 for 4- 1/2 months after the 26.8 percent rate increase. A basic medical plan costs $422.19, representing a 19.6 percent increase.

Although UH has endorsed the HMSA plans, students aren't required to sign up, said Glenn Nochi, assistant specialist for University Health Services.

"Students can go with any plan they want, but I think they'd be hard-pressed to find a better plan, given the coverage," he said.

"I call Kaiser and HMSA once a year to find out what it costs an individual on the street to get a plan, and they're talking $200 a month."

He said that the state insurance commissioner regulates annual rate increases and has approved the HMSA student plan rates based on utilization data.

Nearly 3,900 students at all 10 UH campuses and at Chaminade take the plans, he said, explaining that UH works with Chaminade to serve both institutions.

He said UH received some student complaints about the increased rates, but a spokeswoman at Chaminade University said it had none.

One student e-mailed Nochi saying he had just received his HMSA bill and the "staggering" increases "took me by total surprise." The student complained about the double hit of rising tuition and higher health insurance costs.

"If HMSA were to continue to raise its rates at this pace over the next six years, the comprehensive plan would translate into a 329 percent increase. If this were to happen, I would be forced to drop my medical insurance in order to pay for my school tuition," the student wrote.

Nochi explained how the university handles the insurance process in a reply to the student, but he said, "It's just tough. No matter how much explaining we do, it doesn't ease the sting."

He said proposals are solicited every three years from insurance companies to get the best price for student health services, and 10 to 15 companies respond from Hawaii and the mainland.

"A handful of companies specialize in student health insurance," he said. "Usually we go with those. HMSA is not one of those, but we go with HMSA and Kaiser anyway because they're local."

He said HMSA's offer two years ago was far more competitive than any other. Kaiser was selected in the past for a student plan but didn't submit a proposal in 2003, Nochi said.

An insurance committee made up of students, faculty members and health representatives reviews the plans, comparing the coverage and benefits, and selects a finalist, he said.

Nochi said plans are being solicited for the next three-year cycle, starting in August 2006. "We don't want to go longer because prices, plans and coverage change."