Kaiser Permanente Hawaii seeks 10.7 percent hike

Nonprofit Kaiser Permanente Hawaii announced on Nov. 5 that it seeks an average 10.7 percent rate hike for approximately 150,000 members next year. The HMO filed documents last month with the state Insurance Division asking to raise premiums for its large- and small-business members whose plans will renew on Jan. 1.

Kaiser officials said it needs the rate hike -- which, if granted, would be its largest since an 11 percent rate hike in 2005 -- to stem continued losses caused by rising medical costs and the unpredictable economy.

On Nov. 17, Kaiser reported a $1 million loss in the third quarter of 2009, compared to a $2.9 million loss during the same period last year. The state’s largest health maintenance organization generated $239.1 million in revenue but spent $240 million on operations in the third quarter.

HMSA, the state's largest health plan, lost $23 million in  the same period, while UHA, the third-largest health insurer ended the third quarter with a $709,761 loss and HMAA, the fourth-largest, reported a profit of $55 million.

“Like other Hawaii businesses, Kaiser Permanente has been adapting to the rapidly changing economic and business climate to ensure its business model remains strong today and into the future,” said Catherine Bailey, Kaiser’s acting chief marketing officer, in a prepared statement.

Kaiser also filed a request for a 12.8 percent rate hike for approximately 14,000 members with individual coverage. State Insurance Commissioner J.P. Schmidt has 60 days to approve or deny the rate request.