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By Kristi Van Pernis

Unbelievable! HMSA is asking for yet another rate increase instead of initiating internal cost cuts on themselves! Enough is enough!

All HMSA rates went up 12.1% last year. Eight months later, they are asking for another increase on various plans by 7.8% to 15.1%. If approved, this is an obscene rate increase of 19.9%% to 27% plus in less than a year.

Let’s state the facts. Nothing HMSA has done has cut member prices while providing “affordable, quality, health care” which they state as their non-profit mission.

President and CEO Robert Hiam received a total of $1.3 million this past year, Executive VP and Chief Operating Officer, Michael Gold received $965,219, Steve Van Ribbink, HMSA’s Executive VP and Chief Financial Officer, received $633,660 and on it goes.

HMSA needs a huge reality check – in this recession, they need to pay themselves less, (just like the rest of us do), cut out the waste, the ridiculous amounts of mailings and redundant print materials (including the glossy little magazine), the TV ads, and the excessive expense of web designing and maintaining of a site that offers medical advise over the internet (incidentally, this is the same information that you can get for free on MSN.Health or Health.Nih.Gov).

They have increased our rates while pushing dubious generics, Internet medical advise, and decreased benefits while upping prescription co-pays and their salaries, all the while lobbying to influence attempts to reform health care which included increased medical reimbursements to doctors.

A summary of the last decade of HMSA rate increases is incredulous, starting with the year 2000, up 8.5%; 2001, up 9%; 2002, up 5.8%; 2003, up 9.9%; 2004, up 7.7%; 2005, up 5.0%; 2006, up 3.8%; 2007, up 6.7%; 2008, up 10.4%; 2009, up 12.1%; 2010, depending on your plan type, up 7.8%, 10.5%, or 15.1%. (Source: HMSA)

Can anyone name another industry that can jack up rates every single year as much as HMSA does and still stay in business? No wonder they say Hawaii is such a hard place to do business. Undoubtedly, many small businesses will be forced to cut back full-time employees to 20 hours or less which means more people without insurance. (Health care reform, anyone?)

HMSA’s tax exempt status gives them an $80 million a year exemption. Great! I want them to build their reserves, I don’t even mind that a “non-profit” can pay it’s CEOs so well, but when that pay comes at the cost of consistently screwing over member business owners and doctors to pay themselves more while masquerading as a non-profit, it’s illegal.

I think it’s insane that Gov. Linda Lingle doesn’t demand a public audit for the State’s largest insurer. A public and/or private audit with transparency is long overdue. Also long overdue is the State Insurance Division’s reply which should just be “NO”.

Kristi Van Pernis is a resident of Kailua-Kona

MEDIA RELEASE

To increase awareness of the dangers of methamphetamine, also called “ice,” the Hawaii Meth Project is joining with HMSA to add a special “Not Even Once” category to HMSA’s 2010 Teen Video Awards Contest, as well as additional prizes.

The Hawaii Meth Project will award Flip personal video cameras to contest winners whose public service announcements (PSAs) communicate the anti-Meth message “Not Even Once.”

“Meth use in the state of Hawaii is a significant problem and the Hawaii Meth Project’s ‘Not Even Once’ category is an important addition to this year’s contest,” said Bob Hiam, HMSA President and Chief Executive Officer. “We want teens to get their peers talking about the Hawaii Meth Project’s critical message of prevention.”

The annual competition challenges Hawaii’s middle and high school students to create an original PSA about an important teen health issue.

In the “Not Even Once” special category, students are encouraged to create their own video to deliver an impactful message preventing Meth use. The Hawaii Meth Project’s research-based messaging campaign includes hard-hitting television, radio, Internet and print ads that realistically portray the devastating effects of methamphetamine use.

The ads can be viewed on the Hawaii Meth Project Web site, www.hawaiimethproject.org

“We appreciate the opportunity to be part of the HMSA contest, which encourages teens to use their creativity to promote healthy choices,” said Cindy Adams, executive director of the Hawaii Meth Project. “In our outreach to schools and communities, many teens have shared personal stories of the devastating effects of Meth addiction. They can help us reach other teens and we want to urge them to participate in the Not Even Once category.”

Winners will be selected based on content, effectiveness, creativity and videography. Deadline for submissions is March 1, 2010. Finalists will be notified in early April and winners will be announced at a gala awards ceremony May 13, 2010 at Ward Consolidated Theatres in Honolulu.

For general contest information and entry materials, visit www.hmsa.com/community/awards/teenvideo/default.aspx

About the Hawaii Meth Project

The Hawaii Meth Project is a non-profit organization that implements a range of advertising and community action programs to reduce methamphetamine use in the state. Launched in June 2009, the Hawaii Meth Project leverages a proven model that combines extensive research with a
hard-hitting, integrated media campaign.

The Hawaii Meth Project is affiliated with the Meth Project, a national non-profit organization headquartered in Palo Alto, California, aimed at significantly reducing first-time Meth use through public service messaging, public policy, and community outreach.

For more information, visit www.hawaiimethproject.org

About HMSA

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community at large.

HMSA is a member of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 100 million members.

For more information, visit hmsa.com

MEDIA RELEASE

The Hawaii Medical Service Association in conjunction with Hawaii Department of Education and Mothers Against Drunk Driving have launched the 2010 HMSA Teen Video Awards Contest.

The annual video contest challenges students in middle and high schools to create public service announcements focusing on important teen health issues.

Contest categories include fitness/nutrition, drug-free, tobacco-free, underage drinking prevention, and social issues. Socials issues may include topics such as teen pregnancy, Internet safety, bullying, teen suicide, date rape and more.

Middle and high school students must submit fully produced PSAs that do not exceed 27 seconds in length. Winners will be selected based on content, impact/effectiveness, creativity, and videography.

Winning videos will be broadcast on local television stations.

Each winning school will receive funds to purchase additional video equipment or software.

Winners in each category will be awarded as follows: 1st – $1,000, 2nd – $500, and 3rd – $250. The Best of Show will receive an additional $1,000.

Deadline for submissions is March 1. Finalists will be notified in early April and winners will be announced at a gala awards ceremony May 13 in Honolulu.

Information packets, including contest rules, entry forms, release forms and copyright information, have been distributed to schools statewide. All forms must be signed and submitted by March 1, 2010, along with the finished PSA.

The HMSA Teen Video Awards Contest was started in 2003 as a way to raise awareness of health issues affecting Hawaii’s youth. The program involves teens in a way that is fun, creative and thought-provoking. It is intended to inspire youth dialogue and support nontraditional learners.

— Find out more:

www.hmsa.com/community/awards/teenvideo/rules.aspx

MEDIA RELEASE

The Hawaii Medical Service Association (HMSA) Medical School Travel Support Program has provided nearly $90,000 to subsidize travel and living expenses for medical students assisting physicians on Kauai, Lanai, Maui, Molokai, and Hawaii (Hilo and Kona). 

The program, part of a two-year commitment with the John A. Burns School of Medicine (JABSOM), provides valuable Neighbor Island training opportunities for students and much needed health care resources for rural communities.

The HMSA Medical School Travel Support Program makes it possible for additional medical students to perform rotations on the Neighbor Islands where they work with rural physicians to help improve access to quality health care in those communities. 

The program gives Oahu medical students valuable experience that may help shape their decisions about where to practice.

“In an effort to ‘grow our own healers,’ HMSA and JABSOM joined forces last year to provide more medical school students with the opportunity to train on the Neighbor Islands,” said HMSA Senior Vice President Cliff Cisco. “Ultimately, we hope some students return to the Neighbor Islands to practice. In the meantime, they are helping local physicians and rural communities.”

“By working in rural areas, our medical students find out what wonderful practice opportunities there are all across Hawaii,” said Kelley Withy, M.D., associate professor at JABSOM. “HMSA funding has allowed many more students to have these experiences, and we hope the program will grow in the coming year so we can encourage more to practice on the Neighbor Islands.

Program highlights include:

* Six first-year medical school students worked in Kalaupapa under the direction of Kalani Brady, M.D., and provided assistance to physicians in the remote area of Molokai.

* Eight students in the Imi Hoola program provided medical services to rural communities. (Imi Hoola is a 12-month post-baccalaureate program in the Department of Native Hawaiian Health that gives qualified candidates from disadvantaged backgrounds an opportunity to gain valuable experiences and succeed in medical school.)

The John A. Burns School of Medicine, UH Manoa was established in 1965 and has trained more than 4,500 medical doctors (medical school and residency program) to date. 

Approximately half of the physicians practicing in Hawaii are graduates of the John A. Burns School of Medicine MD or residency program.

The University of Hawaii Foundation, a nonprofit organization, raises private funds to support the University of Hawaii System.  

Its mission is to unite donors’ passions with the University of Hawaii’s aspirations to benefit the people of Hawaii and beyond. This is done by raising private philanthropic support, managing private investments, and nurturing donor and alumni relationships.

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community at large. HMSA is a member of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. 

Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 100 million members.

MEDIA RELEASE

The Hawaii Medical Service Association’s Annual Membership Meeting last week included a review of last year’s highlights by President and Chief Executive Officer Robert P. Hiam. 

HMSA Executive Vice President, Chief Financial Officer, and Treasurer Steve Van Ribbink shared 2008 operating results, and Carla J. Nip-Sakamoto, M.D., chairwoman of HMSA’s board of directors, discussed last year’s overall accomplishments.

Hiam reflected on several important national events in 2008, including the election of a young African-American, born and raised here in Hawaii, as president of the United States; the economic recession and collapse of the nation’s financial markets; and the stock market’s downward spiral that caused millions of Americans to lose significant value in their retirement accounts.

He talked about the effect the recession and market collapse had on Hawaii in 2008, including a more than 6 percent rise in unemployment; a more than 4 percent rise in inflation; and a nearly 50 percent rise in local bankruptcies.

Hiam also discussed last year’s efforts to bring a new statewide health care service to the residents of Hawaii, a service that improves access to care by connecting physicians and patients from the comfort and convenience of their home. 

HMSA’s Online Care, the first service of its kind anywhere in the United States, was launched Jan. 15, 2009.

“We decided to make HMSA’s Online Care available to all residents in the state, not just HMSA members. In essence, we wanted Online Care to serve the entire community,” Hiam said. It’s the first such service to be offered to a community anywhere in the country or the world. The launch of Online Care was truly a historic event.”

Hiam also discussed HMSA’s three-year initiative that is helping hundreds of local physicians implement electronic medical record systems for their offices. 

The HMSA Initiative for Innovation and Quality (HI-IQ) is also helping Hawaii’s hospitals improve efficiency, quality and patient safety. The $50 million initiative is funded entirely from the HMSA reserve, not member dues.

“Last year, more than 95 cents of each dues dollar went to pay physicians, hospitals and pharmacies for delivering services to HMSA members,” Hiam said. “Few health plans in the country offer the value that HMSA does. Our promise is to continue to offer our members the best possible return on their health plan investment.”

Hiam concluded his remarks by saying, “From generation to generation, HMSA has been the one thing you could count on to protect your family’s good health and deliver real value for your health care dollar.” About 350 HMSA members attended the meeting.

Last year’s highlights and achievements included:

* HMSA delivered unprecedented value to its members by using 95.2 percent of member dues to reimburse hospitals, physicians, pharmacies, and other health care providers.

* HMSA administered health plans for 16,200 employer groups and 705,200 members.

* HMSA processed an average of 66,300 claims every business day of the year, for a total of 16.8 million claims.

* HMSA’s disease management program helped 113,300 members with serious chronic health conditions, such as asthma, diabetes, heart disease and kidney disease.

* HMSA maintained a provider network of more than 5,300 participating physicians, dentists, hospitals, pharmacies, and other health care providers.

* HMSA Foundation committed $1.6 million in grants to 48 community organizations for 50 projects to help promote the health and well-being of Hawaii’s people.

* HMSA member satisfaction remained very high. In an annual survey, 95 percent of members indicated they would choose their health plan again.

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community at large. It is an independent licensee of the Blue Cross and Blue Shield Association. Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 100 million members.

— Find out more:

HMSA: www.hmsa.com

MEDIA RELEASE

The Hawaii Medical Service Association has announced its operating results for 2008, including a shortfall after taxes of $35.79 million. The shortfall represents 2.4 percent of revenue, and was due in large part to increases in hospital and physician reimbursements. 

In 2008, HMSA’s total payments to health care providers were $1.44 billion. With health care costs continuing to rise, HMSA experienced net losses last year in three out of four quarters.

HMSA Revenue & Benefit Expenses

Last year, HMSA collected $1.51 billion in dues revenue, and paid $1.44 billion for members’ health care services. The year before, HMSA paid $1.55 billion in benefit expenses, while collecting $1.65 billion in dues.

“In 2008, provider reimbursements increased to 95.2 percent of total revenue,” said Steve Van Ribbink, HMSA executive vice president and chief financial officer. “This is 2.2 percentage points higher than our historical average of 93 percent. When a greater percentage of dues revenue is spent on health care services, it puts considerable pressure on the health plan. But on a positive note, it means our members are receiving an outstanding value for their dollar.”

Provider payments of more than $1.44 billion last year also means HMSA paid physicians, hospitals, pharmacies, and other health care providers an average of more than $120 million per month.

HMSA Operating Expenses

HMSA held the line on operating expenses last year. Health plan operating expenses were essentially unchanged, with $158.62 million in 2008, compared to $158.47 million the year before.

Health Plan Membership and Reserve

At the end of 2008, HMSA had 705,249 members and maintained a health plan reserve of nearly $421 million. On average, the HMSA reserve equals $596 per member. The reserve declined $148.4 million, or 26.1 percent, due to higher benefit costs and a 13.4 percent decline in the market value of the investment portfolio.

The HMSA reserve is used to protect members from financial losses and community health emergencies, like a disease outbreak or natural disaster. It is also used to fund important health initiatives that affect members and the community at large.

In 2008, the reserve helped HMSA absorb expenses associated with several unexpected events, such as the bankruptcy of Aloha Airlines and the state’s sudden decision to stop funding Keiki Care, a program where HMSA and the state shared the cost of providing coverage to uninsured children. In both of these cases, HMSA extended coverage to those most affected, but did not pass the cost along to its existing members or employer groups.

HMSA also continued to fund its HMSA Initiative for Innovation and Quality (HI-IQ) in 2008. The HI-IQ program helps health care providers acquire and implement electronic medical record systems. Once again, HMSA did not pass the cost of the program along to its members or employer groups. Program funds came from the reserve.

In 2008, the HMSA reserve generated $47.82 million in investment income. This represents an increase of 21.3 percent over 2007. These investment dollars helped reduce the health plan’s shortfall for the year.

2008 Executive Compensation

HMSA also released information about 2008 executive compensation. Total compensation for HMSA’s president and chief executive officer (CEO) was $1,305,152 in 2008. The executive vice president and chief operating officer earned $965,219, and the executive vice president and chief financial officer earned $633,660 in 2008.

The Compensation and Human Resources committee of HMSA’s board of directors is responsible for determining executive compensation. The committee uses the services of a national human resources consulting firm, to help establish appropriate levels of compensation. The committee looks at other local and national companies similar to HMSA in size, complexity, and scope of responsibility.

The program closely links executive compensation to performance. Executive compensation consists of a base salary and performance incentives set by the board of directors, including measures focusing on the delivery of high quality health care, outstanding customer service, value to the community at large, and overall financial performance.

The 2008 performance incentive portion of key executives’ compensation was based on strategic measures met for 2005, 2006 and 2007, for which payment was received in 2008. In short, the 2008 incentive payments represent accomplishments over a three-year period.

Due to the current economic downturn in Hawaii and the nation, HMSA’s CEO recommended a freeze of his base salary for 2009. The board of directors has authorized the salary freeze.

Despite experiencing a moderate operating shortfall in 2008, beyond planned losses resulting from funding programs directly from reserves, HMSA was able to achieve its major financial performance goal of returning more than 93 percent of members’ dues dollars in health care benefits. This benefit-to-revenue ratio remains one of the highest in the nation. 

The health plan also held the line last year on operating expenses and performed well in all other areas, including ensuring the delivery of quality care and outstanding member services.

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors and includes representatives from health care, business, labor, government, education, clergy, and the community at large. HMSA is a member of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to nearly 100 million members.

— Find out more:

Hawaii Medical Service Association: www.hmsa.com

MEDIA RELEASE

The Hawaii Medical Service Association is reminding high school student athletes and coaches that scholarship applications are still available for the HMSA Kaimana Awards & Scholarship Program. In 2009, 21 scholarships will be awarded to high school seniors.

The scholarship application deadline is Feb. 27.

Each scholarship is worth $2,000, and three distinguished recipients will receive an additional $1,000. Winners will be selected based on athletic and academic achievement, community involvement, sportsmanship, and letters of recommendation.

Applicants must be a Hawaii high school senior graduating in 2009 with a minimum cumulative grade point average of 2.75 in their senior year. They must also have played on at least one of their school’s athletic teams in a league-sanctioned sport during their high school career.

Student athletes must submit a short essay on why they believe they deserve a scholarship. The applications must also include recommendations from two faculty members and the student’s GPA must be verified in writing by a member of the school faculty.

Scholarship recipients will be notified in writing in May, and will be recognized at the HMSA Kaimana Awards & Scholarship Program luncheon June 20 at the Hilton Waikiki Prince Kuhio Hotel.

HMSA started the HMSA Kaimana Awards & Scholarship Program in August 2005. The program recognizes outstanding all-around achievement by public or independent high schools, rewards individual student athlete accomplishments with scholarships, and supports excellence in coaches’ education.  

HMSA’s sponsorship is one of the largest high school athletics sponsorships in Hawaii’s history and directly supports the health plan’s goal to promote physical activity among Hawaii’s youth. The program is named Kaimana, the Hawaiian word for “diamond,” to reflect its multifaceted nature.

— Find out more:

Hawaii Medical Service Association: www.hmsa.com

Hawaii High School Athletic Association: www.sportshigh.com/resources/scholarship

MEDIA RELEASE

The Hawaii Medical Service Association is encouraging Hawaii residents to register for its new Online Care service.  

HMSA’s Online Care is a statewide service designed to connect patients and physicians via the Internet or telephone. The serviced launched last month, and everyone in the state can connect with a physician on the system.

“HMSA’s Online Care is up and running, and is helping to improve access to care throughout the Islands,” HMSA Vice President Michael Stollar said. “Everyone in Hawaii should take advantage of this great service. Not only can you create and manage your own personal health record with HealthVault, you can allow a physician to view it online, and that enhances your interaction with the physician.”

From the comfort and privacy of their home, patients may speak with a local physician from HMSA’s credentialed provider network. Online visits are immediate, secure, private and affordable. Residents can use the service at any time of day or night, and the system is able to incorporate personal health information stored confidentially by patients.

Before using HMSA’s Online Care:

* Your computer needs to have Web access (Internet Explorer 7 or Firefox 2). For the best connection, you’ll want to have a high speed Internet hook-up. A Web camera greatly enhances the experience, but is not required.

* You must be 18 years or older to register. You must also have a valid phone number, e-mail address, and a credit or debit card with a major credit card logo on it. Debit cards must not require a PIN number for use.

* If you are currently an HMSA member, you’ll want to have your membership card handy when you are ready to go online and enroll in the system. 

Online tools and tutorials will guide visitors through the registration process. There is no cost to register, although it is recommended to register before needing a physician.

Microsoft’s HealthVault program was developed to allow consumers can collect, store and manage their own personal health information online. At their discretion, consumers can use HealthVault to share personal health information with others, including health care providers, family, and other trusted individuals.

Once enrolled, patients may also read through resources available on the system, take a health risk assessment, and more. At any time, patients may update account information, including credit card information, profile or personal information. 

All Hawaii consumers will be able to provide online physicians with personal health information. Physicians then may provide advice and consultation that takes into consideration a patient’s health history.

HMSA’s Online Care is not intended to replace face-to-face visits with a physician, and may be used as a convenient alternative in situations where a patient is not able to visit a physician’s office. HMSA’s Online Care may be used whenever a patient needs to speak with a physician right away, including after business hours and on weekends and holidays.

HMSA is a non-profit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community at large. HMSA is an independent licensee of the Blue Cross and Blue Shield Association. Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 100 million members.

— Find out more:
HMSA: www.hmsa.com
HealthVault: www.HealthVault.com

MEDIA RELEASE

HMSA Launches nation’s first online health care service in January.

The Hawaii Medical Service Association (HMSA) has announced the official launch date and consumer price of its new online care service to connect patients and physicians via the Internet or telephone. The service will be the first of its kind in the nation and will help improve access to care throughout the islands.

HMSA’s Online Care will go live Jan. 15, 2009, and will be available to everyone in Hawaii. From the privacy of their home, HMSA health plan members will be able to go online and speak with a physician for only $10. Non-members will be able to use Online Care for $45 per visit.

Online sessions will be immediate, secure and private.

“We’re very proud to offer this revolutionary new service to the residents of our community, especially those who live in rural areas of the state,” HMSA Vice President Michael Stollar said. “One of the many benefits of HMSA’s Online Care will be improved access to care throughout Hawaii.”

Each online session may run for up to 10 minutes. If the physician and patient wish to extend the session another five minutes, HMSA members will pay $5 more. Non-members will pay $15 for an additional five minutes. Patients will pay for online sessions with a major credit card or a PIN-less debit card with a major credit card logo.

“HMSA’s Online Care is not intended to replace face-to-face visits with a physician, but may be used as an easy and convenient alternative in situations where a patient may not be able to visit their physician’s office,” Stollar said. “Because Online Care will be available anytime, it may be used after business hours, on weekends and holidays, and whenever a patient needs to speak with a physician right away.”

HMSA participating physicians who sign up to provide online services will be able to do so from their home or office. Day or night, physicians may log on at any time and provide services to patients around the state. Physicians may work online as much or as little as they like. The system is completely flexible, and can enhance the way a physician chooses to practice.

“At HMSA, we’re excited about Online Care and the many benefits it has for patients, physicians, and the community at large,” Stollar said. “We’re also proud to be leading the country in implementing this innovative health care technology, and believe it will go a long way to help improve access to care in the islands.”

HMSA is a non-profit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community at large. HMSA is an independent licensee of the Blue Cross and Blue Shield Association. Nationally, HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 100 million members.