Honolulu-based Hawaii Pacific Health and the state’s largest health insurer, Hawaii Medical Service Association, are in preliminary talks regarding a possible merger, the Honolulu Star-Advertiser reported Dec. 8.
Four things to know:
1. The two organizations said the goal of the potential merger would be addressing affordability, expanding access and improving long-term financial stability, according to the report.
2. Hawaii Pacific Health, a four-hospital system, said in a statement that affordability is becoming “increasingly out of reach for families across the nation, and in Hawaii, the situation is even more severe.” The state’s geographic isolation and some of the highest costs of living in the country have created “overwhelming financial pressures for families.” Those challenges have extended directly to healthcare “as costs rise and infrastructure is stretched thin.”
3. A spokesperson for Hawaii Medical Service Association, which is an independent licensee of the Blue Cross and Blue Shield Association, told the news outlet that the company is facing balancing costs and access, “while continually searching for ways to keep premium costs sustainable for its members.” The spokesperson said the payer believes in an open system of care delivery and is committed to ensuring its members have freedom of choice when selecting a provider.
4. The health system said it is also committed to an open system where patients have the freedom to choose health insurance they trust and receive care from providers and medical facilities they prefer. The system said that while the discussions are preliminary, they are “urgently needed.”
