In HNN’s new livestream show “Covering the Cost with Annalisa Burgos,” we break down the numbers behind Hawaii’s affordability crisis in candid conversations with financial experts, entrepreneurs and community leaders.
HONOLULU (HawaiiNewsNow) – In the next episode of “Covering the Cost” on April 15 at 12:30 p.m., Annalisa Burgos talks to Ray Vara, president/CEO of Hawaii Pacific Health (HPH), and Mark Mugiishi, president/CEO of Hawaii Medical Service Association (HMSA), about their proposed partnership known as “One Health Hawaii.” UHERO health economist Tim Halliday will also weigh in on the impact of the proposed merger in light of current health economic policies.
Hawaii is projected to spend nearly $200 billion in healthcare in the next decade, and lose nearly $3 billion in federal subsidies. With Hawaii’s healthcare system struggling with rising costs and shrinking access, the state’s largest insurer and second-largest hospital network say One Health Hawaii will prevent a buyout by a mainland company. Critics worry it would create a monopoly that unfairly shifts burden and costs to other hospitals.
HPH and HMSA executives say the plan will help streamline care and cut administrative costs potentially saving up to $2 billion over the next decade. They point to double digit increases in the cost of providing healthcare in Hawaii, exacerbated by federal cuts to Medicaid and Affordable Care Act premiums.
“Without change, those pressures will only increase, so I would argue that danger to safety net procedures and provider mix and all of that are far more concerning in the current status quo than they would be in an integrated model.
But critics note that HMSA covers about 70 percent of the state’s health insurance market, and this kind of “vertical merger” would limit competition and shift more burden and patient costs to other hospitals.
“I’m as concerned as they are that you folks are gonna start offloading patients with high needs because they’re not adding value to One Health Hawaii,” said state senator Joy San Buenaventura, chair of the Senate committee on Health and Human Services.”
“Thanks to statutes put into place by this esteemed body, the insurance commissioner, the attorney general, and other regulators specifically tasked with making sure that it’s accessible, affordable, and fair,” said Mark Mugiishi, CEO of HMSA.
Critics say there is little precedent for a hospital system merging with a monopoly health insurer and a regulatory framework is needed to ensure oversight and accountability.
The merger is undergoing an antitrust review by the U.S. Department of Justice, Attorney General, and insurance regulators.
Catch “Covering the Cost with Annalisa Burgos” Wednesdays at 12:30 p.m. online, on HNN’s streaming app and anywhere you get your podcasts.
From skyrocketing housing prices to the country’s highest tax burden, Annalisa is covering the cost of aloha in America’s most expensive state and offering practical strategies, policy insights, and honest talk about what it really takes to call Hawaii home.
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