Legislators and other state officials are now in the midst of setting up Hawaii's exchange, dubbed the Hawaii Health Connector, but they need to take a breath and reconsider what they're doing.
A group of public-interest organizations has rightly sounded an alarm about how Act 205, which enabled the setup of the exchange, passed last year without sufficient scrutiny and debate.
At the center of this year's storm is the issue of incorporating insurance-industry advice in the formation of the health plans without leaving consumers and their advocates out in the cold.
Advocates say that the current slate of appointees nominated by Gov. Neil Abercrombie include representatives of the Hawaii Medical Service Association, Kaiser Permanente, Hawaii Primary Care Association, Maui Medical Group, HMA Inc. and Hawaii Dental Service, and that all these entities have a conflict of interest as voting members of the board.
Those advocates are pressing for amendments to the law.
A key change would bar the inclusion of exchange board members who have a financial interest in the plans.
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A better model would be one similar to the California Health Benefit Exchange, described as an "independent public entity within state government."
Before the House vote this week, state Rep. Joseph Souki expressed his misgivings about the private nonprofit setup and his preference for a "quasi-government" exchange.
"This is extremely important because you are going to be providing health services for people who cannot qualify for other health services," Souki said.
He's right. SB 2434 attempts to incorporate a measure of public transparency into a private nonprofit structure.
The ideal solution would be a broader revision of Act 205, one that would both allow for industry consultation on the creation of health plans without conflicts among the voting members, and for the public to be engaged.
http://insurancenewsnet.com/article.aspx?id=336235
Hat Tip: InsuranceNewsNet.com
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