Kaiser cuts health insurance rates for laid-off workers

By Frank Cho
Advertiser Staff Writer

In the growing effort to help workers laid off in the wake of the Sept. 11 terrorist attacks, Kaiser Permanente Hawaii is offering to discount health insurance rates by 33 percent for some workers who are losing their employer-sponsored coverage.

The Kaiser Permanente Personal Advantage Conversion Gap Plan would lower the monthly rate to $101.03, down from $134.37 for single coverage. A couple would pay $202.06 and a family of three or more would pay $303.09 if they qualified.

Anyone who has lost their health coverage following the Sept. 11 attacks can apply, but the program will be limited to the first 300 applicants who qualify, Kaiser said.

"We are doing it because we think it is important to contribute in some fashion to the relief effort locally for people who have lost their coverage. We don't have the deep financial resources to have a substantial program. But we should do what little we could," said Jan Kagehiro, a Kaiser spokeswoman in Honolulu.

Kaiser, the state's biggest health maintenance organization, joins the Hawai'i Medical Service Association, Hawai'i's largest fee-for-service insurer, in providing subsidized health care coverage for laid-off workers in the wake of the attacks.

HMSA last month began a $50 million program for its members that included direct payments and allowances for financially struggling employers.

To qualify for the Kaiser plan, workers must apply within 60 days of losing their health coverage and have no other options, Kagehiro said. Applicants must be between 18 and 65 years old and have an income level below 300 percent of the Federal Poverty Level Standards.

"We are mostly communicating with our members and to employers right now," Kagehiro said.

The plan would be similar to the company basic plan. In addition to the monthly premium, users would pay a $15 fee for an office visit and a 50 percent co-payment for laboratory, X-ray and diagnostic tests. There would be no charges for hospital inpatient services, Kagehiro said.

Once accepted, applicants could receive the subsidized coverage for up to six months. Kagehiro said Kaiser plans to evaluate the plan in June to determine whether to continue coverage at that time.

Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com