UHA medical plan seeks rate hike

By Deborah Adamson
Advertiser Staff Writer

University Health Alliance has filed plans with the state to raise premiums by 7.2 percent for its medical plan, effective in 2004.

"The cost of medical care is going up," said Max Botticelli, chief executive of UHA. "People utilize medical services more and the cost of those services has gone up."

UHA also has asked for a 15.7 percent increase to its prescription drug plans and a 1.4 percent bump for its vision program. The state Insurance Division must approve the rate increases.

The average base rate for a family of three or more people would rise to $663.45 monthly on average for the most popular UHA 600 plan. Under the UHA 2000 program, which offers more hospital coverage, a family would pay an average of $726.45 a month.

Botticelli said the insurer tried to hold down premium increases by cutting administrative costs and working with providers to better manage use of healthcare services.

But he sees premiums continually going up as long as healthcare costs and use of medical services keep rising. Health insurers are not the only ones responsible for the problem so the solution does not lie entirely with them, he said.

"Until our community deals with the quality problems inherent in our system of healthcare, such increases will continue," Botticelli said.

Last year, UHA asked for a 10 percent rate increase. The health insurer serves 25,000 members in Hawai'i — all employer groups and largely small businesses.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.