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The Honolulu Advertiser

Posted on: Friday, June 17, 2005

New health plan tentatively OK'd

By Rick Daysog
Advertiser Staff Writer

A key state committee yesterday tentatively approved a Las Vegas insurer's health plan that would compete head-on with Hawai'i's largest insurance providers.

The Prepaid Health Care Advisory Council, which reviews and approves health insurance plans in Hawai'i, gave its tentative approval to Summerlin Life & Health Insurance Co.'s preferred-provider organization plan, which calls for patients to pay for 10 percent of their medical costs.

Approval is contingent on modifications to the plan's language and the level of benefits offered. Once the modifications are made, it will be sent to labor director Nelson Befitel for his review, said Todd Meek, Summerlin's president and chief executive.

The plan also requires approval of the state Insurance Division.

"We feel pretty confident that we will get approval relatively quickly," Meek said.

Meek said that more than half of the people with health insurance in Hawai'i are covered under such 90/10 plans and a majority of dominant player Hawaii Medical Service Association's insured are covered by such policies.

He added that labor contracts often require such coverage for union members.

Summerlin, which began operating in Hawai'i last November, offers health insurance where patients pay for 20 percent of the healthcare costs.

It also offers a $15 Office Plan, which sets co-payments at $10 and $15, depending on healthcare services.

Summerlin recently won approval from the state Insurance Division to lower its health insurance rates by an average of 18 percent, as of July 1.

Summerlin also announced that it is teaming up with Costco to offer discounted rates on health insurance to business members beginning July 1. It is offering three health plans through Costco to the retailer's "executive" members, who pay higher annual fees for more benefits than the basic membership provides.

Reach Rick Daysog at rdaysog@honoluluadvertiser.com or 525-8064.