Posted on: Wednesday, June 8, 2005
Summerlin joins forces with Costco
By Deborah Adamson
Advertiser Staff Writer
A Las Vegas health insurer that recently started doing business in Hawai'i is teaming up with Costco to offer discounted rates on health insurance to business members.
This week, Summerlin Life & Health Insurance Co. began offering three health plans through Costco to the retailer's Executive Members, who pay higher annual fees to get more benefits than the basic membership. The health plans will be available to businesses with two or more employees starting July 1.
"We're looking forward to a great relationship with Hawai'i," said Todd Meek, president and chief executive of Summerlin. "Hawai'i has been a wonderful success story for Costco ... They knew what was happening in Hawai'i and the cry from business owners for competition."
The state's health-insurance market is dominated by the Hawaii Medical Service Association, or HMSA, and Kaiser Permanente Hawaii. Summerlin started writing insurance policies in the state in November, but would like to gain a better foothold.
By partnering with Costco, Summerlin taps into the warehouse retailer's marketing might in the state.
Hawai'i is one of a handful of states where more than half of the households are Costco members, said Dellanie Fragnoli, assistant vice president of insurance services at Issaquah, Wash.-based Costco.
Costco already has a relationship with Summerlin in Nevada, and Hawai'i was an expansion of the partnership, she said. The retailer doesn't plan to partner with other health insurers in Hawai'i.
Meek said eligible businesses can expect about a 5 percent break in rates by going through Costco. The three plans being offered are the Summerlin $15 Office Plan, the Summerlin All 20% Plan, and the Summerlin PPO Plan.
The plans have a variety of payment options. For example, the $15 Office Plan and the PPO Plan have a set $15 copayment for doctor's visits while the All 20% Plan requires the patient to shoulder 20 percent of the cost for doctor visits. There is a $100 annual deductible for the $15 plan and $250 a year for the PPO. The All 20% Plan has no deductible.
The plans also include such benefits as bereavement services, respite care as well as cardiac and pulmonary rehabilitation. Members can sign up for drug, vision and dental benefits as well.
Summerlin contracts with more than 3,800 healthcare providers in Hawai'i.
For details, call Costco at (866) 435-4494 or go to www.costco.com, click on "services" and then "health insurance." Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.
