Hawaii Medicare+Choice Plan Intends To Exit Market, Citing Low Reimbursements

Citing "inadequate" federal reimbursements, the Hawaii Medical Service Association told members on Aug. 1 that it will end its Medicare+Choice plan at the end of the year, the Honolulu Advertiser reports. The HMO, called Health Plan Hawaii Classic, has about 2,500 members and charges monthly premiums of $55. The Advertiser reports that according to HMSA Senior Vice President Cliff Cisco, Hawaii counties receive some of the "lowest federal reimbursements" in the country for Medicare+Choice plans. Cisco said, "The funding from the government as to what they're willing to pay in Hawaii for this small plan was just not adequate. We estimate that we lost about $1.7 million" last year. "We were hoping there would be more reimbursement in the program, but it didn't happen," he added. Affected Health Plan Hawaii Classic members have the option of switching to HMSA's fee-for-service plan, Plan 65 C Plus, which has a $61.75 monthly premium, or to an HMO managed by Kaiser Permanente Hawaii. Beneficiaries may also return to traditional Medicare and purchase Medigap coverage. A spokesperson for Kaiser said that the insurer had no plans to change its Medicare+Choice plan, Senior Advantage, the Advertiser reports. HMSA is the largest insurer in Hawaii, with Kaiser the second-largest (Hooper, Honolulu Advertiser, 8/7). For further information on state health policy in Hawaii, visit State Health Facts Online.