HONOLULU — The Hawaii Health Insurance Exchange Board should not include members who represent health insurance providers, consumer advocates said Monday. HONOLULU — The Hawaii Health Insurance Exchange Board should not include members who represent health insurance providers, consumer advocates
HONOLULU — The Hawaii Health Insurance Exchange Board should not include members who represent health insurance providers, consumer advocates said Monday.
The board was established to create the Hawaii Health Connector, a marketplace where Hawaii’s more than 100,000 uninsured residents can find affordable health coverage.
According to consumer advocates from several community groups, it would be a conflict of interest for health insurance representatives to play a decision-making role on the board because they have a financial stake in the outcome.
“How could they not act on behalf of the organizations that they work for?” asked Kokua Council President Larry Geller, speaking on behalf of nine advocacy groups at a news conference.
“Consumers should guide the development of our health plan, not the monopoly health insurers,” he said.
A Senate committee plans to hold confirmation hearings on 11 exchange board nominees Friday, and the advocates plan to oppose the confirmation of those with ties to major Hawaii insurance companies.
Beth Giesting, Gov. Neil Abercrombie’s Healthcare Transformation Coordinator, responded to the consumer advocates in writing: “We respect their point of view but also appreciate the contributions of insurers to this process. It is critically important to engage consumers and ensure a good understanding of Insurance Connector,” she stated.
State Insurance Commissioner Gordon Ito, who serves on the exchange board, told a House committee Monday that his department has the authority to qualify health plans and insurers, not the Connector board. Having representatives from major health insurance providers won’t hinder competition, he asserted.
“The insurance division is the gatekeeper,” Ito said.
The Hawaii Health Connector will be operational in January 2014, as mandated by the national Affordable Care Act. Ito describes the Connector as a website that will match individuals with the insurance packages that best meet their needs.
If Hawaii were to prohibit insurers from serving on the exchange board, it wouldn’t be alone. According to AARP Hawaii State Director Barbara Kim Stanton, other states have passed or are considering legislation that would prohibit health insurance companies from serving on exchange boards.
She and other consumer advocates suggest that insurers serve on a non-voting advisory council instead.
“You can always call on technical panels and that is a fairer, more professional way to do it than to have someone with an inherent conflict of interest on the board,” Stanton said.
The House Consumer Protection and Commerce Committee sided with the consumer advocates. Late Monday afternoon, members amended a bill that establishes the makeup of the board to make insurers advisers only. The bill now moves to the full House.
