Hawaii Medical Assurance Association announced it plans to buy the fully insured health insurance membership of Summerlin Life and Health Insurance Hawaii, If the deal is approved state Insurance Division, the aquisition will create the state’s second-largest preferred-provider health insurer.
HMAA founded in 1989 is currently Hawaii’s fourth-largest health insurer, If the deal is approved state Insurance Division, the aquisition will create the state’s second-largest preferred-provider health insurer at 48,000 memebers. Summerlin, based in Nevada, has about 22,000 Summerlin members, and entered the Hawaii market in 2004.
HMAA will add approximately 22,000 Summerlin members to its rolls, which will grow to 48,000 statewide.
Not included in the purchase are Summerlin affiliates HMA Inc. and Health Management Network, which will continue to market and deliver claims administration and provider network services to large self-funded employee benefit health plans, such as those of the major labor unions in Hawaii.
“This is a great acquisition for HMAA as our company begins its third decade of serving businesses and their employees across Hawaii,” HMAA Chairman, President and CEO John Henry Felix said in a prepared statement. “This move will provide both HMAA’s and Summerlin’s members with a wider choice of comprehensive benefit options that will help protect them and their families.”
In the statement, Summerlin President and CEO Paul Carter said the company decided to leave the fully insured health insurance market in order to focus on its administrative services business.