HMSA Will Terminate Two Medicare Advantage Plans in 2027
Hawaii subscribers must prepare for plan shifts and potential premium increases during the upcoming cycle.
Updated on Oct. 10, 2026 in Healthcare
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HMSA will discontinue its Akamai Advantage Complete Plus and Standard Plus PPO plans in 2027 as rising costs and the loss of federal subsidies force coverage adjustments. Subscribers will soon receive mailers detailing new plan options and required enrollment changes.
Why it matters
Operators in Hawaii should anticipate increased healthcare cost burdens for employees and residents as the loss of federal premium subsidies and shifting coverage models narrow benefits. These adjustments mark a broader tightening of health plan options for the state's Medicare population.
HMSA CEO compensation rose to $3,226,000 in 2025 from $1,863,184 in 2020, while CFO compensation reached $1,602,000. These figures arrive as 20 million Medicare enrollees nationwide receive a $90 federal payment to offset Part B premiums.
The players
HMSA
The dominant health insurer in Hawaii, managing coverage for a significant portion of the state's Medicare population.
Mark Mugiishi
The CEO of HMSA, whose executive compensation increased from $1,863,184 in 2020 to $3,226,000 in 2025.
The Trump administration
The federal executive branch, which recently ended a temporary Medicare subsidy program and initiated $90 payments for enrollees.
The details
The plan cancellations reflect broader sustainability pressures following the Trump administration's decision to end a temporary Medicare subsidy program. Subscribers are currently receiving informational packets by mail to navigate 2027 plan alternatives, though those choosing to stay on previously covered medications that were removed from the formulary in August 2026 will now bear the full retail cost.
Timeline
2020: HMSA CEO compensation was $1,863,184.
August 2026: HMSA removed certain generic medications from coverage.
Oct. 15, 2026 to Dec. 7, 2026: Medicare open enrollment period.
2027: Termination of specific HMSA Medicare Advantage plans.
Market Landscape
The cancellation of these plans follows the Trump administration's decision to sunset a temporary Medicare subsidy program. This move forces local insurers to reconcile rising health plan and drug costs by offloading expenses to the consumer.
Business owners should budget for potential increases in employee healthcare costs during upcoming renewal cycles. Consult with your benefits administrator or counsel to review the new plan materials arriving by mail to determine the impact on your specific employee coverage.
The takeaway
Operators must proactively evaluate how insurance-driven shifts in employee out-of-pocket costs will influence workforce retention and benefits planning. Calendar the October 15, 2026, open enrollment window to review new premium disclosures immediately upon arrival.
What happens next
Subscribers should prepare for the Medicare open enrollment period running from October 15, 2026, to December 7, 2026.
Further reading
For more background on regional health coverage, visit the Hawaii Healthcare section.
More information
For plan details and upcoming changes, visit the HMSA Medicare plan information portal.
Source note: This article includes information reported by KHON2.
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