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The Honolulu Advertiser
Posted on: Wednesday, November 18, 2009

EUTF to discuss health plan delay


By Derrick DePledge
Advertiser Government Writer

Hawaii news photo - The Honolulu Advertiser

Linda Lingle

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The state Employer-Union Health Benefits Trust Fund, responding to concerns about the potential interruption of health care coverage for government workers in January, will hold a special meeting Monday to consider giving workers more time to choose a health plan.

The EUTF board of trustees will consider a two-week extension in the open enrollment period, from Nov. 30 to Dec. 15. The board will also consider a one-month delay in when the new plan selections take effect, from January to February, to provide adequate time to process applications.

The board may also authorize the hiring of temporary staff after the EUTF administrator warned that applications may not be processed in time because of staff shortages and a paperwork backlog.

Gov. Linda Lingle asked the EUTF to consider the special meeting, citing the confusion many government workers have about the open enrollment process and the staff difficulties in handling the increased workload.

On Friday, the leaders of the Hawaii Government Employees Association, the University of Hawaii Professional Assembly and the United Public Workers asked the EUTF to cancel open enrollment and continue existing health plans for six months. Several state lawmakers have said open enrollment should be suspended.

Lingle, in a letter Sunday, said she was not recommending that the open enrollment period be extended, but did urge the board to address the challenges.

"I am concerned that this situation could potentially result in an interruption in medical coverage for active employees and/or retirees at the start of the new year," the governor wrote. "I am also concerned that employees will not understand that their carrier may have changed, and that their visits to their usual physicians may therefore no longer be covered."

The EUTF is offering government workers a new health care option through the Hawai'i Medical Service Association with lower premiums and a higher co-payment. The state will cover 80 percent of the cost of services and workers would pay 20 percent.

The EUTF is also offering the current health care plan — with costs split 90 percent to 10 percent — but administered by HMA Inc. instead of by HMA and HMSA. HMA is a sister company of Nevada-based Summerlin Life & Health Insurance Co.

Workers who have HMSA but want to keep the current health care plan would automatically be moved to HMA, while those who want to change to the new option under HMSA have to apply.

The EUTF and HMA have complained that HMSA, the state's largest health insurer, has misled government workers in e-mails and advertising and created confusion about open enrollment. HMA has suggested that HMSA made a tactical mistake in choosing to administer the new option and could lose customers to HMA by default.

HMSA, which has asked the EUTF to cancel open enrollment because of the confusion, has defended its advertising as an attempt to educate government workers.

Recognizing that confusion exists, the EUTF board will consider instructing EUTF administrator Jim Williams to hold a press conference to "clarify misconceptions and any confusion about the current open enrollment to the employees and the public."

The special meeting was necessary because the next regular board meeting is not scheduled until December.

John Radcliffe, an EUTF board member, said he hopes the special meeting will end any confusion.

"I think after that things should straighten out," he said. "Hopefully they will and we'll be able to move forward."