New Private Program Will Give Hawaii’s Uninsured Access to Discounted Care for Monthly Fee

Hoping to provide a "partial solution" to rising health care costs, a Hawaii business is set to launch an alternative to an employer-based plan that will provide the uninsured with access to certain discounted medical services for a monthly fee, the Honolulu Star-Bulletin reports. Under the DirectCare plan, created by the international trading and consulting firm Dawson International, families will pay $35 a month and singles will pay $20 a month for annual check-ups and 25% discounts on other services if they pay by cash or credit card at participating physician offices at the time of the visit, according to Don Dawson, the company's founder and president. While the Star-Bulletin reports that similar plans have produced "mixed results" in Hawaii, in part because consumers often incorrectly believed them to be insurance policies, Dawson said that both consumers and doctors are eager for an alternative given the state's rising health costs. "The health care industry in Hawaii is in turmoil. Physicians are spending too much money and time on processing claims and accounts receivable and fighting ever-decreasing reimbursements," he said. He added that if it can be demonstrated that the plan helps the uninsured, the state may investigate other ways to control health care costs; a 1974 state law limits the extent to which employers can alter employee health plans. Dawson said that he eventually plans to promote medical savings accounts, which allow patients to save money tax-free for medical services, along with DirectCare (Danninger, Honolulu Star-Bulletin, 2/13).

Study of Mandatory Coverage Approved
In other Hawaii news, a joint legislative committee on Feb. 12 approved a bill (HB 2835) that would require the state to study the "social, medical and financial" ramifications of mandated health insurance coverage. The legislation, passed by the House Committee on Labor and Public Employment and the House Committee on Economic Development and Business Concerns, does not appropriate any funds for the study and will be subject to further hearings. Separately, the joint committee deferred action on a bill (HB 2750) that would increase the amount employers could require their workers to contribute to their health insurance premiums. Under current law, employees may pay no more than 1.5% of their gross monthly salary toward their health coverage. The bill would set the maximum employee contribution at 40% of the health plan's monthly premium (Danninger, Honolulu Star-Bulletin, 2/13).