The state Insurance Division has approved an 8.4 percent rate increase for Hawaii Medical Service Association’s health plans for more than 8,250 individuals.
HMSA originally requested a 19 percent premium hike.
The increase is for policies known as transitional "grandmother" plans, which existed before the Affordable Care Act took effect in January. The policies aren’t compliant with the ACA, also known as Obamacare, which requires greater benefits in new insurance plans that began this year.
In November 2013, President Barack Obama announced that states could decide whether or not to allow existing small group and individual insurance policies to be extended through 2015.
The Division said Friday the reduction will save HMSA members $2.3 million in health care premiums.