Senator's supporter lobbies for HMSA

By Kevin Dayton
Advertiser Capitol Bureau Chief

A lobbyist who has worked for state Sen. Ron Menor's exploratory campaign for lieutenant governor is now lobbying on behalf of Hawaii Medical Service Association in its effort to block new insurance rate regulation — a bill that goes before Menor's committee today.

Some say Linda Rosehill's dual roles "conflict." Advertiser library photo • May 27, 1996

He described Rosehill as one supporter among many, and said his position on rate regulation will be determined by what is best for consumers.

But six people familiar with Menor's exploratory campaign, including some elected officials, said Rosehill plays a more prominent role. One person familiar with the arrangement described Rosehill — a longtime state Democratic Party official — as a "senior adviser" to Menor.

The six did not want their names used because they expect to deal with Menor, D-18th (Mililani, Waipahu, Crestview), or his committee in the future and do not want to anger Menor.

Rosehill expressed surprise that her role would merit a news story, noting that she and other lobbyists volunteer with a number of campaigns.

	Rate regulation hearing slated
•	The Senate Commerce, Consumer Protection and Housing Committee will hold a hearing on Senate Bill 2302, regarding insurance rate regulation, today at 9 a.m. in committee room 016 of the State Capitol.

Rosehill has also lobbied for years on behalf of the oil industry through the Western States Petroleum Association, which has been monitoring gas pricing legislation that Menor will also consider as chairman of the Senate consumer protection committee. The association represents Chevron, Shell, Arco and Unocal, which account for more than 50 percent of the Hawai'i market.

Menor said his position on the gas pricing issue also will be determined by what is best for consumers. He said he has introduced or agreed to hear measures that HMSA and the oil industry oppose, which he said demonstrates his independence.

It is not unusual for lobbyists to volunteer in political campaigns, but Rosehill's role in Menor's campaign has drawn attention in the Capitol, largely because the health insurance rate regulation bill is so prominent. It is one of the most important measures moving at the Legislature this year.

"I'm sure the fact that she's working on his campaign was one of the reasons that HMSA picked her up as a lobbyist," said Larry Meacham, spokesman for Common Cause Hawai'i. "Obviously, they would like to get as much influence in Menor's campaign as possible."

George Fox, president of Advocates for Consumer Rights, said he believes any role by Rosehill in the Menor campaign would be a conflict of interest for the legislator.

"It looks like money talks," Fox said. "If HMSA has got somebody that helps in his campaign, that doesn't look good for regulating the health insurance industry, which sorely needs regulation in my opinion."

Stacy Evensen, HMSA's vice president for community and government relations, said HMSA hired Rosehill a month or two ago because the insurer expected that "a heavy load" of bills affecting HMSA would be up for consideration this year. She said HMSA has a small in-house lobbying staff and wanted help from someone with professional experience.

When asked if HMSA hired Rosehill because of her role in the Menor campaign, Evensen declined comment. She also declined to say how much Rosehill is being paid.

Rosehill, who is an experienced lobbyist, said she does not believe HMSA hired her because of her role in the Menor campaign. "I hope they picked me up because I'm a very good lobbyist and I do a good job. I don't think (helping Menor's campaign) was the specific reason or anything like that."

Rosehill has many years of experience in Democratic Party politics, serving as secretary of the Democratic Party in the 1980s and as the party's coordinated campaign chairwoman in 1992. She was a researcher for former House Speaker Henry Peters, and served as Democratic national committeewoman in 1995 and 1996.

Menor said Rosehill has supported him in past campaigns "by word of mouth," praising him to friends and suggesting they support him. He said she has also been helping him "in a general sense" since mid-2001, when Menor began exploring a possible run for lieutenant governor. Menor said he expects to announce in May or June whether he will actually run for lieutenant governor.

"She supports me, but as far as being a full-time committed supporter with an actual title, she doesn't have a formal role in my campaign," Menor said.

Rosehill said she will not be active in Menor's campaign or anyone else's during the legislative session because she cannot spare the time away from her lobbying business.

Menor noted his committee was the first to hold hearings on proposals to impose rate regulation on HMSA and other health insurers, and said the fact that he is willing to advance such bills demonstrates his independence.

He added that "ultimately my decision on this issue will be based on what I believe are the best interests of consumers and the people of Hawai'i, and not because of who I have supporting me, because again, I've got supporters on all sides of this issue."

One House committee has given preliminary approval to a bill to limit how much oil companies can charge dealers for the gasoline they supply, and Menor said he is "open" to the idea of gas pricing regulation.

However, he also said before lawmakers should intervene to regulate gas prices they need more information to determine if the oil companies are making "excessive" profits, and that data isn't available now.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com or 525-8070.