State bumbles mass mailings for health plan at a cost of $176,254

Two erroneous mailings to 250,000 Quest health insurance members will cost state taxpayers $176,254.

The Department of Human Services Med-Quest Division, which manages the Medicaid health insurance program for low-income residents in Hawaii, said it spent $117,170 on a first mailing and $59,084 on a second mailing to Quest members regarding the choices they have for insurance carriers. But because both of those mailings had problems, the state will send a third mailing, again at a cost of $117,170.

The problems had to do with this year’s Quest open enrollment, the annual period when members are allowed to change health plans. The department said Monday it canceled the open enrollment that began May 1 and was to have ended May 22.

DHS sent information to 250,000 Quest members before the start of open enrollment. The problem with the first mailing was that it left out Kaiser Permanente as a health plan choice on Oahu and Maui, so a second mailing was sent May 8.

The department then canceled the open enrollment for May altogether and rescheduled it for June 17-28. The agency will send out a third mailing before June 17.

Among the reasons DHS cited for canceling open enrollment was that marketing by certain undisclosed health plans did not comply with state contracts. In addition, it said a payment dispute between the Hawaii Medical Service Association and the Wai­­anae Coast Comprehensive Health Center had caused confusion.

Quest members who had already selected a new insurer will have to go through the process again. Insurance companies, which had been advertising to lure customers away from other carriers, might have to repeat their ads.

Hawaii Medical Service Association, AlohaCare, Ohana Health Plan and UnitedHealthcare had run TV and print advertisements prior to open enrollment. They wouldn’t disclose how much they spent to attract new Quest members statewide. Kaiser Permanente Hawaii, which is offered only on Maui and Oahu, said it doesn’t advertise for Quest members.

"Because open enrollment comes only once a year, it is a very important time for our members to consider their options," said AlohaCare spokes­man Daryl Huff. "AlohaCare places great importance on keeping our members and the community informed, especially at this crucial time of the year. "

Ohana Health Plan said it has reordered inserts for the additional mailing.

"Our top priority is that our members have the information they need to make decisions that can impact their health and quality of life, and that they have access to the most appropriate care available in the communities in which they live," said Wendy Morriarty, ‘Ohana Health Plan president. "We have not yet determined if addition advertising will be needed."