HMSA to End Key Medicare Advantage Plans in 2027

Hawaii Medical Service Association (HMSA), the state’s largest health insurance carrier, has announced the discontinuation of its Akamai Advantage Complete Plus (PPO) and Standard Plus (PPO) Medicare plans effective in 2027. This change is expected to lead to increased premiums, higher out-of-pocket costs, or reduced coverage for numerous seniors in Hawaii.

Reasons Behind the Changes to HMSA Medicare Plans

According to Kimberly Takata Endo, HMSA’s vice president of Medicare, the adjustments come as a response to rising expenses. "Medicare Advantage plans across the country have been dealing with rising Medicare health plan and prescription drug costs, and unfortunately, it’s made it really difficult to keep plans affordable and sustainable. HMSA is changing our plans now so that we can continue to offer reliable local Medicare Advantage plan options for our seniors in Hawaii," Endo said.

HMSA has indicated that while similar options will be available next year, subscribers should anticipate alterations in either pricing or the scope of service provided by these new plans.

Impact of Federal Medicare Changes and Subsidy Cuts

The shift comes after the federal government ended a temporary subsidy program that helped offset Medicare premiums for the past two years. As reported by the Associated Press, the Trump administration ceased the program, though it says a one-time payment of $90 per person will be issued to assist over 20 million Medicare enrollees with their Part B premiums. However, HMSA subscribers are expected to bear the immediate brunt of these changes, with more significant impacts anticipated in coming years.

Executive Compensation Surges as Plan Changes Roll Out

The decision to reduce coverage coincides with notable increases in HMSA executive compensation since 2020. The Honolulu Star Advertiser reported that HMSA President and CEO Mark Mugiishi saw his compensation increase from $1,863,184 in 2020 to $3,226,000 in 2025. Similar increases were recorded for the company’s Executive Vice President and Chief Financial Officer, whose pay more than doubled to $1,602,000 during the same period. Other executives, including the Executive Vice President and Chief Administrative and Strategy Officer and the General Counsel, also received substantial raises.

Takata Endo declined to comment on whether executive compensation would also be subject to cuts. HMSA’s website states that their executive compensation program is "fair, equitable, performance-based, and competitive" to attract and retain skilled leaders.

Changes Affecting Prescription Coverage and Mental Health Medications

Recent plan changes have also included the removal of at least one generic medication for mental health conditions such as anxiety and depression, despite doctors’ recommendations. HMSA explained to affected subscribers that these changes are intended to ensure medication appropriateness and help keep plans affordable. Subscribers who wish to continue their previous prescriptions are required to pay the full cost out-of-pocket.

Subscriber Communication and Medicare Enrollment Support

Many HMSA Medicare Advantage subscribers were notified via letter regarding the upcoming changes to their plans. HMSA has announced that more detailed information packets, including 2027 plan options and enrollment forms, will be mailed in the near future.

Subscribers seeking information or support regarding hmsa medicare plans and medicare enrollment are directed to hmsa.com/medicare. Additionally, AARP Hawaii offers guidance on the open enrollment period, which runs from October 15 to December 7.

Source: khon2.com.