Hawaiian Unemployed People Can’t Afford Health Insurance

Health insurance has a become a big issue as more and more people are laid off due to the financial crisis, their options being either seeking new individual health insurance or using the COBRA plan, which was created especially for laid-off workers.

The problem with COBRA is that it is largely unaffordable, taking up more than three-quarters of a worker's government unemployment compensation. Currently, the unemployment rate is 7.2%, which is the highest the US has seen in 16 years. This means that millions and millions of people are jobless, thus looking for health insurance. A laid off worker with health problems is very unlikely to find individual health insurance, as companies are afraid to cover them.

The situation in Hawaii is even worse, even though the COBRA plan is the cheapest in Hawaii, most of the unemployed people can’t afford paying for health insurance. This is very hard, as one is constantly thinking and wondering what is to do if he gets seriously sick.

The large majority of Americans get their health insurance from their work place, those who are jobless are thus in a big predicament. About 46 million people have no health insurance and the rest are covered by government insurance. Surveys show about 18 to 26 percent of people eligible for COBRA use the program in any given year, meaning that a low percentage of the people without a job live without a health insurance.

The health care system needs to be reformed, one way or another, and this should be the number one priority.

Hawaii Auto Insurance Fraud Investigation Unit Convictions Increase by 61 Percent in 2008

HONOLULU – The Insurance Fraud Investigation Unit of the State Department of Commerce and Consumer Affairs (Fraud Unit) experienced a 61 percent increase in criminal convictions for motor vehicle insurance fraud in 2008 over the previous year.

Fraud Unit convictions increased from 18 in 2006 to 34 in 2007 and 55 in 2008. Convictions for felony charges may result in a prison sentence of up to 10 years and/or a fine of $25,000.

Examples of insurance fraud cases in 2008 include charges involving a Big Island resident, a body shop owner, and a career criminal.

Beverly Medeiros, an Educational Assistant in Pahoa, Hawai‘i was investigated for five separate cases. Medeiros alleged that she was unable to work due to injuries from an auto accident. Medeiros created fictitious employers and utilized a post office box address to intercept all correspondence. Medeiros defrauded three different insurance companies. In January 2008, Medeiros was sentenced to 30 days in jail. Medeiros was also ordered to pay restitution totaling more than $103,000 along with court fees in the amount of $1380.00.

In a separate case, body shop owner Bryan Hong pleaded no contest and was granted a deferral for defrauding an insurance company. In October 2008, Mr. Hong was ordered to pay nearly $4,000 in restitution for work that the company paid for but was not performed. The work consisted of safety and structural repairs to a customer of O’Sung Auto Body. Mr. Hong was further ordered to pay a $1,500 fine and complete a five-year probationary period.

In a typical case of insurance fraud, Noelani Delizo obtained insurance coverage after she was involved in a three-car accident. Delizo then reported a false date of accident in an attempt to have her insurance company pay for the damages. In November 2008, the court ordered Delizo to serve a five-year prison term for attempting to obtain fraudulent insurance benefits. She was also ordered to pay $500 in restitution to the accident victims.

Insurance Fraud affects everyone by inflating the cost of insurance. Insurance fraud is estimated to cost each household in Hawai‘i an additional $200 to $300 in increased premiums every year. Informing insurance companies of suspicious insurance fraud activity may help in lowering premiums for all Hawai‘i’s citizens.

To report insurance fraud or for more information, call the State of Hawai‘i’s Insurance Fraud Hotline at (808) 587-7416.

Christine Hirasa is the Public Information Officer for DCCA. Reach her at mailto:chirasa@dcca.hawaii.gov