HONOLULU — Hawaii’s insurance commissioner encouraged businesses to keep providing health insurance for employees as many companies close or limit operations in response to the COVID-19 virus.
State Insurance Commissioner Colin Hayashida urged insurers to offer continuing coverage during the pandemic.
Hayashida’s March 27 memo was addressed to “Admitted and Non-Admitted Insurers Offering Policies in the State of Hawaii.”
“The anticipated negative impact on individuals and businesses in this state due to COVID-19 will be realized in the near future,” Hayashida wrote. “Business will have substantially reduced revenue, employees will have reduced hours and may lose their jobs, with further-reaching repercussions.”
The commissioner encouraged providers to ensure policies do not lapse and to refrain from canceling or failing to renew policies because of nonpayment while the state is dealing with the virus outbreak.
For most people, the coronavirus causes mild or moderate symptoms, such as fever and cough that clear up in two to three weeks. For some, especially older adults and people with existing health problems, it can cause more severe illness, including pneumonia and death.
Under the Prepaid Health Care Act of 1974, Hawaii employers are required to provide health care coverage for eligible employees who work 20 hours or more after four consecutive weeks of employment. Furloughed employees generally receive health insurance benefits, but workers who are laid off do not.
Hayashida also urged insurers to grant grace periods for premium payments, work on structured payment plans, waive late fees and penalties, and work with businesses for 60 days after the health emergency has passed.
Kaiser Permanente Insurance Co. said the company will not terminate health coverage for nonpayments through April.
The Hawaii Medical Service Association, an independent licensee of the Blue Cross and Blue Shield Association, said it plans to follow Hayashida’s guidance.
Hawaii Dental Service did not announce special arrangements in response to the virus. But many dentists have postponed non-emergency appointments.