HomeMy WebLinkAbout2020-03-11 Letter to Laura H. Thielen, Lorraine R. Inouye, Brian Taniguchi and Les Ihara SCR 102, SR 66 Req the Leg Ref Bureau to Cond a Study of Enacting Statutory Authority for Collective Neg Btw Phy & Health Care Insurers
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Roy Takemoto
Managing Director
Harry Kim
Mayor
Barbara J. Kossow
Deputy Managing Director
March 11, 2020
Senator Laura H. Thielen, Chair
Senator Lorraine R. Inouye, Vice Chair
Committee on Government Operations
Senator Brian T. Taniguchi
Senator Les Ihara, Jr., Vice Chair
Committee on Labor, Culture and the Arts
Dear Chairs Thielen and Taniguchi, Vice Chairs Inouye and Ihara, and Committee Members:
RE: SCR 102/SR 66 Requesting the Legislative Reference Bureau to Conduct a Study on
the Feasibility of Enacting Statutory Authority for Collective Negotiation Between Physicians and
Health Care Insurers in Hawaiʻi to Restrain or Balance the Monopsonistic Market Power of
Healthcare Insurers Over Independent Physicians
Hawaiʻi’s healthcare system is in crisis. We do not have enough providers, and many of the
providers we have are at or near retirement age. There is little prospect that we will somehow generate
enough new providers to replace those we are losing, and the situation gets worse with every passing
year.
The Legislature has actively tried to address the problem with innovative approaches, but it is
clear that more must be done. If we do not improve the economics of practicing medicine, we will not
have enough medical practitioners to meet the needs of our citizenry. We are at a breaking point.
There are many reforms to be tried, but one of the most promising is to allow collective action by
physicians when dealing with health benefit plans. Such an innovation will not be without cost—if the
plans have to pay out more, they will charge higher premiums. But the alternative—the status quo—is
unacceptable. It is time to consider “collective mediation.”
I hope you will approve SCR 102 and SR 66.
Respectfully Submitted,
Harry Kim
MAYOR