The state’s smaller health insurers are countering the aggressive marketing campaign of the Hawaii Health Connector, the state’s insurance exchange established as part of the federal law known as Obamacare.
Hawaii Medical Assurance Association and UHA (University Health Alliance), which have built a niche in the small-business market, have published paid advertisements to inform their customers that they can stick with the insurance they have rather than use the coverage offered through Obamacare.
"If you like your current health insurance plan, you can keep it," the advertisements say, quoting President Barack Obama, who pushed for the health insurance reform law.
The advertisements also say small-business owners will "probably not" see a decrease in medical insurance cost if they buy through the Hawaii Health Connector, and it is "highly unlikely" they will get any tax credits through the Connector.
The HMAA and UHA ads are in response to confusion in the marketing of the Connector for small businesses and consumers, many of whom are being bombarded by one-sided messages, said Linda Kalahiki, chief marketing officer of UHA, which insures roughly 4,000 employer groups with 53,000 members.
"We just feel like there’s a lot of misinformation and confusion out there," she said. "You have the Connector with millions of dollars they’re spending on marketing, and everybody just hears this one message. So we’re just trying to make sure they hear the other sides to it as well."
HMAA and UHA want to make sure that individuals and small businesses understand that purchasing coverage on the new online marketplace opening Oct. 1 is an option, not a requirement, and that people may find more affordable options through smaller carriers.
The Connector will offer 95 plans by Hawaii Medical Service Association and Kaiser Permanente Hawaii, the state’s dominant health insurers and the only medical carriers participating on the exchange.
"Because there’s only two plans on the Connector, Kaiser and HMSA, the Connector has in some people’s view become an extension of the marketing arm for HMSA and Kaiser — that’s one of the concerns," said Reg Baker, HMAA’s chief operating officer and chief financial officer, "when people believe that the Connector is a requirement then that benefits HMSA and Kaiser. We’re not anti-Connector. We’re trying to be as cooperative and friendly in this process as possible. We just want to make sure if there’s any confusion out there, we try to eliminate it."
HMAA and UHA have taken issue specifically with "somewhat misleading" Connector ads that small businesses could save 50 percent on insurance premiums.
"I don’t think it was the intent of the Hawaii Connector to mislead, but it was a little questionable as to how it was put in the ad," HMAA Chairman John Henry Felix said. "Fifty percent, that is the maximum (tax credit small businesses could receive). It could happen but it probably won’t happen."
It is a "little bit of marketing hype," added Kalahiki.
Still, the intent of HMAA and UHA’s ad is not to discourage people from going onto the exchange, but merely to clarify that there are other affordable options.
"We definitely did not want to bash the Connector or the exchange. That’s not our intent," said Felix. "They placed an ad; we placed an ad for clarification."
HMAA covers 3,300 small businesses with 40,000 members.
The Connector is Hawaii’s version of a health exchange, a major provision of the Patient Protection and Affordable Care Act, or Obamacare, designed to match qualified individuals with subsidized health plans.
The law mandates that Americans have health coverage by Jan. 1 or face tax penalties. Those who are currently insured do not have to do anything since they already meet the requirement.
"My recommendation is let’s see how this all plays out and don’t rush into anything," Baker said. "Once the Connector launches, there’s gong to be other (HMAA and UHA) plans out there competing with the plans that are on the exchange. There’s going to be a lot more transparency about what the rates are going to be, and there’s going to be pressure to be more competitive."
The Connector’s goal is to be a one-stop marketplace where consumers and small businesses can compare and choose policies best suited for their needs.
"We would encourage (people) to come to the Connector come Oct. 1 and see what their options are and make the decision best for them in their situation, whether enrolling on the Connector or maintaining the relationship they have with their current insurance provider," said Connector spokesman Brian Fitzgerald. "It’s all about consumer choice. We’re not forcing people to go either way. We’re just hoping to give them more options."
