Insurance Commissioner Gordon Ito has approved an 8.9 percent rate increase for Hawaii Medical Service Association’s community rated group plans. Initially, HMSA requested a rate hike of 13.1 percent. The reduction of 4.2 percent from the requested rate saves about
Insurance Commissioner Gordon Ito has approved an 8.9 percent rate increase for Hawaii Medical Service Association’s community rated group plans. Initially, HMSA requested a rate hike of 13.1 percent. The reduction of 4.2 percent from the requested rate saves about $21 million in health care premiums for more than 110,000 consumers and 8,500 small businesses.
Approximately 5 percent of the 2014 rate increase is for medical costs and 4 percent for federal Affordable Care Act fees. The new rate increase will be effective July 1.
“Eligible small businesses should take advantage of ACA tax credits to help offset increasing insurance premiums while the credits are available,” said Ito. “Moving forward we need to aggressively work toward reducing health care costs so premiums do not continue to rise year over year.”
“The Insurance Division has worked toward reducing premium increases while remaining sensitive to the financial solvency of Hawaii’s health insurers,” Ito said. “Between 2007 and 2010, community rated group plan rates increased 9.3 percent per year on average. The rate increases significantly declined from 2011 to 2014, when premium increases averaged only 4 percent per year. Even with the addition of ACA fees, we are still seeing slower growth rates for CRG plan premiums compared to prior years.”
