Hawaii Health Insurance

If you are planning to purchase a new health insurance policy in Hawaii, it’s important to first understand the regulations and obligations under which this state’s insurers must operate.  The competitiveness of today’s health insurance market can be turned to your advantage, so long as you are properly informed.  To that end, here are some of the basic things you should know before you begin shopping around.

• Like most states, Hawaii requires its insurers to guarantee the renewability of any health insurance policy they sell.  This means that, as long as all premiums are duly paid, your policy cannot be cancelled for any reason without your specific consent.
• Hawaii also mandates that any individual health insurance that also covers dependents should automatically provide coverage, for up to 31 days, to any newborn or adopted children of the policy-holder.
• Pre-existing conditions, defined as any health issues diagnosed or treated before your health coverage begins, may be specifically declared exempt from coverage by your insurer; the duration of this exemption can vary on a case-by-case basis.  Your insurer will typically reserve the right to withhold payment for any medical cost related to these conditions.
• Hawaiian health insurance companies are permitted to deny any new application for coverage on the basis of health, or for other reasons, at their sole discretion.  Although they may not cancel existing coverage due to health complications, insurers here are free to calculate your rates on these grounds.
• Small businesses in Hawaii are, by state law, guaranteed the ability to purchase any group health coverage that is currently being offered to other small businesses in this state.  For these purposes, a “small business” is a company with anywhere between two and fifty employees.
• State law does not prohibit insurers from setting rates or premiums for small-business health insurance on the basis of employees’ health, gender, age, marital status, or other factors, but as with other health insurance it is illegal to cancel coverage outright on the basis of health problems among the insured.
• If you are self-employed and do not have any other employees, you are not eligible to purchase small-business health insurance in Hawaii.  If you decide to purchase individual health insurance instead, you may be able to deduct some or all of the cost of this coverage from your taxes.

Since health and age might affect your ability to obtain good health insurance in the first place, it’s almost always best to purchase coverage as early in life as possible.  When shopping for a new policy, always make sure to compare any offer you get against similar coverage offered by competing companies— the first offer you get will seldom be the best one available.

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