Lawmakers Raise Concerns Over HMSA-HPH Merger Proposal

Lawmakers in Hawaii expressed significant concerns regarding the proposed merger between the Hawaii Medical Service Association (HMSA) and Hawaii Pacific Health (HPH) during a session held at the State Capitol on January 13, 2026. The meeting, attended by members of the House Committee on Consumer Protection & Commerce and the Senate Committee on Commerce & Consumer Protection, featured testimony from various stakeholders in the healthcare sector.

Jason Chang, a representative from HMSA, presented details about the merger, highlighting potential benefits for the healthcare system. However, many lawmakers, including Senators Joy Buenaventura, Jarrett Keohokalole, and Scott Matayoshi, voiced reservations about the implications for consumer protections and healthcare access.

Dr. Mark Mugiishi, a prominent figure in the Hawaii healthcare community, along with Ray Vara, CEO of HPH, defended the proposed consolidation, arguing that it would enhance service delivery and streamline operations. Despite their assurances, questions lingered about how the merger might affect patient care and costs for consumers.

During the discussions, lawmakers raised specific concerns about the impact on competition within the healthcare market. Edmund Chan participated via teleconference, emphasizing the need for transparency and accountability in the process. His call for rigorous regulatory scrutiny reflected the sentiment among many committee members who fear that reduced competition could lead to higher prices for services.

Another significant voice in the conversation was Chase Aalborg from Adventist Health Castle, who underscored the importance of maintaining diverse healthcare options for residents. He argued that a merger of this magnitude could diminish choices for patients, particularly in rural areas where access to care is already limited.

The testimony witnessed a range of opinions, with Paul Kaiser, President and CEO of UHA Health Insurance, also addressing the committees. He cautioned that the consolidation could lead to a monopolistic environment, ultimately harming consumers by limiting their options and increasing costs.

As the session progressed, lawmakers actively engaged with the presenters, seeking clarity on how consumer interests would be safeguarded post-merger. Joy Buenaventura raised critical points regarding the potential long-term effects on consumer protections, calling for comprehensive assessments before any decision is made.

The committees are expected to deliberate further on the merger proposal, weighing the potential benefits against the risks to consumer welfare and healthcare accessibility. The outcome of this discussion could have significant implications for Hawaii’s healthcare landscape, influencing both providers and patients alike.

In summary, while proponents of the HMSA-HPH merger argue it could improve healthcare services, persistent concerns from lawmakers about consumer protections and market competition highlight the complexities surrounding this significant proposal. The deliberations will continue as stakeholders await further developments.