HONOLULU (AP) — The state has approved rate hikes for members of Kaiser and the Hawaii Medical Service Association under Affordable Care Act plans. ADVERTISING HONOLULU (AP) — The state has approved rate hikes for members of Kaiser and the
HONOLULU (AP) — The state has approved rate hikes for members of Kaiser and the Hawaii Medical Service Association under Affordable Care Act plans.
Members of HMSA, the state’s largest health insurer, will see a 27.3 percent increase in rates, and Kaiser members will see a 34.4 percent increase starting next year, according to the Honolulu-Star Advertiser (https://bit.ly/1hoQhzD).
HMSA had proposed an average 49 percent rate hike, which was the highest it has ever requested, for nearly 21,000 members in plans for 2016. Kaiser proposed to raise rates nearly 9 percent for 13,000 members in health care plans.
State and health insurance company officials said they underestimated the cost of providing coverage to those insured through President Barack Obama’s health care law and now have to adjust their rates to recoup the higher expenses.
“Covering thousands of previously uninsured people without knowing their health status creates uncertainty,” said Kaiser spokeswoman Laura Lott. “Now that the actual costs are known, we have to adjust to compensate.”
Approved rates for individual and small groups under the Affordable Care Act have also been released and are available on the state’s Insurance Division website.
HMSA spokeswoman Elisa Yadao said the premium increase only affects about 3 percent of members who purchased HMSA individual plans. It does not affect those who have health insurance through their employers, those with Akamai Advantage plans or pre-Affordable Care Act plans.
