LIHU‘E — A new health-insurance provider is ready to enter the Hawaiian arena. And, more than that, they are offering discounted rates for their health plan. Officials of the Las Vegas-based Summerlin Life and Health Insurance Company were on Kaua‘i
LIHU‘E — A new health-insurance provider is ready to enter the Hawaiian arena.
And, more than that, they are offering discounted rates for their health plan.
Officials of the Las Vegas-based Summerlin Life and Health Insurance Company were on Kaua‘i last week to make a presentation to representatives of member businesses of the Kaua‘i Chamber of Commerce.
More than 100 people were scheduled to attend the event at The Terrace Restaurant at Kauai Lagoons.
Summerlin officials were on hand to talk about the new insurance options, and to collect information in order to come up with quotes for prospective clients.
Company officials are seeking to compete with HMSA (Hawaii Medical Services Association), the largest health-insurance provider in Hawai‘i.
Summerlin leaders will not compete directly with officials of Kaiser Permanente, according to company officials.
Summerlin leaders are offering 20 percent off premiums quoted by HMSA officials, according to Jack Borja, senior vice president of I/MX, Summerlin’s parent company.
After the 20-percent decrease, Summerlin’s rates for its Comprehensive Medical Plan with a $15 copayment would average $240 per month for a single person, $490 for two, and $720 for a family plan, according to information provided by the company.
HMSA leaders recently received approval to increase rates by up to 4.9 percent for small businesses, effective Friday, July 1.
HMSA spokesman Cliff Cisco said earlier the company would take a wait-and-see attitude toward Summerlin.
Insurance broker Andy Jones of Intersource Companies, who is working with Summerlin, said company leaders are ready to succeed.
“We can compete. It’s not a big problem. They (HMSA) need competition, and competition will drive rates down,” Jones said.
I/MX was cleared by leaders in the state Department of Commerce and Consumer Affairs Insurance Division in 2004 to provide coverage through Summerlin.
I/MX leaders already had a presence in Hawai‘i with their health-plan-administrator subsidiary HMA Inc.
Jones said Summerlin leaders are offering group-association plans at good rates.
“We’re putting together group plans for individual companies, and get them rates similar to union plans,” he said.
He said a “group” could be any business ranging from two employees to 300. The Kaua‘i Chamber of Commerce has more than 300 members, according to Randy Gingras, Chamber president.
He said the goal was to give subscribers a great plan, and allow them to save money.
The company will offer subscribers a preferred provider organization plan (PPO).
Jones said this allows subscribers to choose any doctor they wish. Jones said 96 percent of the state’s physicians are available through this plan.
He said this kind of reach and availability would allow Summerlin to compete with HMSA.
Hawai‘i-based subscribers can also use their plan in other states.
The plan user pays a flat $15 fee for an office visit.
“Hawai‘i is the only state in the union required by law that an employer must buy insurance for his employees,” Jones said.
HMA Inc. has approximately 150,000 subscribers, Jones said, many of whom are union-related.
Founded in 2003, Summerlin has 3,800 providers in Hawai‘i, and a regional operations center in Honolulu, according to information provided by the company.
Summerlin is a unit of Tempe, Ariz.-based I/MX Companies.
They cover a million people in Illinois, Iowa and Nevada. HMSA covers nearly 700,000 members in Hawai‘i.
