HMSA Will Terminate Medicare Advantage Plans in 2027
Hawaii's insurer plans to cut specific Medicare Advantage offerings amid rising costs.
Updated on Oct. 10, 2026 in Healthcare
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HMSA will discontinue its Akamai Advantage Complete Plus and Standard Plus plans starting in 2027. The company cites rising drug and health plan costs along with the end of a federal subsidy program as primary drivers for the change.
Why it matters
Rising operational costs and the conclusion of temporary federal premium support have forced insurers to adjust benefit structures. Subscribers will likely experience higher premiums or increased out-of-pocket expenses for their healthcare coverage.
The Trump administration will issue $90 one-time payments to 20 million Medicare enrollees to offset Part B premiums. Meanwhile, HMSA CEO compensation grew from $1,863,184 in 2020 to $3,226,000 in 2025.
The players
HMSA
The Hawaii Medical Service Association is a nonprofit health insurer serving the residents of Hawaii.
Mark Mugiishi
Mark Mugiishi serves as the CEO of HMSA and oversees the company's strategic planning and benefit adjustments.
The Trump administration
The Trump administration oversees federal Medicare policy and temporary subsidy programs for health plan enrollees.
The details
HMSA is mailing information packets with 2027 plan options and enrollment forms to all affected subscribers. Patients who choose to keep medications removed from the coverage list in August 2026 must now pay the full out-of-pocket cost for those drugs.
Timeline
2020: HMSA CEO compensation was $1,863,184.
August 2026: HMSA removed certain generic medications from its coverage.
Oct. 15, 2026 to Dec. 7, 2026: The Medicare open enrollment period.
2027: The scheduled termination of specific HMSA Medicare Advantage plans.
Market Landscape
The shift follows the conclusion of federal temporary subsidy programs, which previously allowed insurers to maintain lower premiums. This change forces local providers to consolidate offerings to remain sustainable within the national healthcare competitive environment.
Subscribers to the affected plans must select new options during the upcoming enrollment window to ensure continuous coverage. Patients impacted by previous formulary changes will continue to face full costs for those specific generic medications.
The takeaway
Healthcare consumers should proactively review their benefit statements as insurers consolidate plans in response to federal subsidy changes. Maintaining current coverage levels may require switching to new plan structures during the annual open enrollment period.
What happens next
Subscribers should monitor their mail for 2027 plan documents and prepare to review new coverage options during the open enrollment period from October 15 to December 7, 2026.
Further reading
Learn more about local health coverage shifts in the Healthcare section.
More information
Review available 2027 options on the HMSA Medicare plan information portal.
Source note: This article includes information reported by KHON2.
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