HMSA-HPH partnership highlights healthcare cost crisis

Proposed collaboration aims to address unaffordable medical expenses in Hawaii

Feb. 6, 2026 at 4:39am

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The high cost of healthcare in Hawaii has prompted a proposed partnership between the state's largest health insurer, HMSA, and the largest healthcare provider, Hawaii Pacific Health (HPH). The partnership is seen as a response to the growing unaffordability of medical care, which has led to rising insurance premiums, stagnant wages, and higher prices for goods and services.

Why it matters

The proposed HMSA-HPH collaboration underscores the broader systemic issues plaguing the healthcare industry in Hawaii and across the United States. Factors like the high cost of certain treatments, the disconnect between patient costs and insurance coverage, and the burden on businesses to pay escalating insurance premiums have all contributed to the healthcare affordability crisis.

The details

HMSA and HPH announced plans to form a partnership in January 2026 in an effort to address the growing unaffordability of healthcare in Hawaii. The two organizations cited the complex and multi-faceted nature of the problem, which includes the high costs of certain medical treatments, the disconnect between patient out-of-pocket costs and insurance coverage, and the strain on businesses having to pay rising insurance premiums.

  • HMSA and HPH announced the proposed partnership on January 7, 2026.

The players

Dr. Mark Mugiishi

President and CEO of HMSA, Hawaii's largest health insurer.

Ray Vara

President and CEO of Hawaii Pacific Health, the state's largest healthcare provider.

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What they’re saying

“The cost of health care is unaffordable, so much so that we have HMSA and Hawaii Pacific Health proposing a partnership to address the problem.”

— Doug Tonokawa, Kailua resident

What’s next

The proposed HMSA-HPH partnership will require regulatory approval before it can move forward. If approved, the two organizations will work to develop strategies to reduce healthcare costs and improve affordability for patients and businesses in Hawaii.

The takeaway

The HMSA-HPH partnership is a recognition that the healthcare affordability crisis in Hawaii has reached a critical point, requiring bold action and collaboration between the state's largest insurer and provider. Addressing the complex, systemic issues driving up medical costs will be crucial to ensuring accessible and affordable healthcare for all residents.