Printer FriendlyUHA Increases Physician Reimbursements —
Health Insurer Seeks to Address Neighbor Isle Doctor Shortage
(HONOLULU: FEBRUARY 7, 2007) — Physicians in the UHA health care network will see an increase in the amount they are paid to deliver medical services under a new reimbursement schedule announced today by the health insurer. The new schedule, which takes effect April 1, increases payments for primary and preventive care services on all islands, with a differential paid to physicians practicing on the Neighbor Islands.
"Our high cost of living, rising malpractice insurance costs and inadequate Medicare and Medicaid reimbursements have made it increasingly difficult for Hawaii physicians to sustain their medical practices," noted Max Botticelli, M.D., chief executive officer of UHA. "Physicians — especially in our Neighbor Island communities — are leaving Hawaii, and the result is serious lack of access to medical care."
"While UHA can't control all of the factors that contribute to this crisis, we can do our part by increasing the amount our providers are paid," Botticelli said.
UHA's new provider agreement includes a 5 percent increase in Physician reimbursement or a total of over $1,000,000. Rather than distribute the increase evenly on all islands, UHA has elected to distribute 60 percent of the total to providers statewide. An additional twenty percent will be distributed to Neighbor Island physicians, and the remaining 20 percent will be distributed to providers who perform specific preventive services such as mammograms or childhood preventive health examinations.
"We are concerned that providers statewide have not been adequately reimbursed for performing preventive health services, which reduce the complications of chronic illnesses that substantially increase the cost of medical care," said Botticelli. "While the amounts we have set aside won't completely rectify that inequity, they will help us develop a fair and accurate mechanism to reimburse providers for specific preventive health services in the future."
"This differential reflects UHA's forward thinking and dedication to providing the people of Hawaii access to quality health care and will be well received by Neighbor Island physicians," said Sylvia Sonnenschein, D.O., an internist and primary care physician. "Furthermore, I was able to remain in practice in Kohala because of direct UHA support of the Kohala Family Health Center, a Hamakua Health Center satellite clinic in Kapaau."
"When we appealed to UHA to help us retain obstetricians on Maui, they responded by increasing reimbursement for obstetric care," said Cliff Alakai, Administrator of Maui Medical Group. "This differential underscores UHA's commitment to maintaining access to quality health care on the Neighbor Islands."
Founded by a group of physicians in 1996, UHA is dedicated to providing access to quality health care services while protecting its members from financial loss due to illness or injury. UHA provides competitively priced medical, drug and vision plans to more than 1,500 employers. With annual revenues in excess of $98 million, it is the third-largest commercial health insurer in Hawaii. For more information, visit UHA's website at www.uhahealth.com.