HMSA Children’s Plan absorbs Keiki Care program

About 42 percent – 1,000 out of 2,400 children – of those covered by the Keiki Care Program before the state suddenly yanked its funding on Nov. 1 are still receiving health coverage through the Hawaii Medical Service Association's Children's Plan. HMSA, which had partnered with the Department of Human Services to provide universal health care to Hawaii children under the program, continued benefits while notifying families of the state action and options.

HMSA contracted with Catholic Charities to call the families and encourage them to apply for the state's QUEST or Medicaid health insurance or enroll in HMSA's Children's Plan. "The state gave the kids two weeks' (notice); HMSA gave them two and a half months," said Jennifer Diesman, HMSA assistant vice president of government. She estimated that Catholic Charities has reached 600 to 700 of the familes affected.

The state and HMSA each were paying $55 per child for the Keiki Care plan, established under legislation passed in 2007. HMSA had asked for an increase to $70 from $55 per month per child for its Children's Plan but went back to the insurance commission for a decrease to keep the $55 rate, Diesman said. "We subsidize the balance."

When it dropped the program, the state said Medicaid eligibility had been expanded so families earning up to 300 percent of the federal poverty level ($73,000 annually for a four-member family) can qualify for health coverage. Keiki Care started last April and aimed to provide health benefits to 3,500 children who did not have health insurance and could not qualify for Medicaid. The administration said the program was not meeting its goal, while HMSA maintains it was on track to do so.

Legislators are introducing bills to try to restore Keiki Care, either through the Department of Human Services or a nonprofit agency contracting with HMSA, Diesman said.