Hawaii Lawmakers Consider Universal Health Coverage Bill

Hawaii House leaders on Jan. 27 introduced a bill (HB 1617) that would establish a state health authority to provide universal health coverage for residents, the Honolulu Advertiser reports. The bill, sponsored by state House Health Committee Chair Dennis Arakaki (D), would combine public and private health insurance expenditures into the authority (Dingeman, Honolulu Advertiser, 1/28). In addition, the legislation would establish a state health authority commission to determine the costs of the authority and to establish a plan to finance the authority (HB 1617 summary, 1/28). The bill also would repeal the 1974 Prepaid Health Care Act, which requires employers to cover most of the cost of health insurance premiums for full-time employees. Hawaii is the only state that requires employers to contribute toward employee's health coverage. "Health care spending is at an all-time high; double-digit increases are expected for Medicaid costs and private insurance premiums; an aging population is needing more care and prescription drugs; and the poor economy is making it difficult for any payer to cover it, whether state governments, businesses or individuals," Arakaki said, adding that the bill would help address the problem. However, state Senate President Robert Bunda (D) raised concerns that the legislation would establish a "bureaucratic maze" in the state's health care system. Cliff Cisco, senior vice president for the Hawaii Medical Service Association, the state's largest for-profit health insurer, added, "This would be a significant move toward government responsibility for all health care. I'm not sure that this community is ready to turn everything over to the government." The rate of Hawaii residents without health insurance increased from 7.5% to 11.1% between 1997 and 2001 (Honolulu Advertiser, 1/28).