Kaiser Permanente thought it had convinced House lawmakers it did not belong in a new health insurance rate regulation bill, but it turns out Kaiser was included anyway by mistake.

State House Rep. Marcus Oshiro, D-39th (Wahiawa), the chairman of the House Finance Committee, had announced that Kaiser and AlohaCare would not be part of the House version of rate regulation, basically leaving the Hawai'i Medical Service Association, the state's largest insurer, to be regulated.

House Speaker Calvin Say, D-20th (St. Louis Heights, Palolo Valley, Wilhelmina Rise), and House Majority Leader Kirk Caldwell, D-24th (Manoa), backed Oshiro's decision despite complaints from other lawmakers that it was unfair to HMSA.

Some lawmakers had even planned a floor amendment Tuesday, when the bill came before the House, to put Kaiser and other insurers back in the legislation.

No need.

Caldwell said yesterday that Kaiser was inadvertently left in the bill after all. "The intent of the Finance Committee was to exempt Kaiser, but it was bad drafting. It was a mistake," he said.

Chris Pablo, Kaiser's director of government and community relations, said he would try to get House and Senate lawmakers to restore the exemption in conference committee. "I can only ask and provide them with the rationale that we don't belong there," he said.

Pablo said Kaiser is unlike the other insurers because it provides healthcare — rather than just pay claims — through its exclusive arrangement with doctors and hospitals.

Kaiser, however, was included in the health-insurance rate regulation law that expired last summer.

Reach Derrick DePledge at ddepledge@honoluluadvertiser.com.