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HMSA faces a lawsuit over its status as a ‘non-profit’

HMSA (File)
HMSA (File)(Hawaii News Now)
Published: Nov. 7, 2020 at 1:54 PM HST
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HONOLULU, Hawaii (HawaiiNewsNow) - An Oahu nutritionist is suing HMSA in a lawsuit designed to weaken the insurer’s power in the health care marketplace.

Nutritionist Kristen-Lindsey Dudley gets referrals from doctors to provide counseling and therapy for things like weight loss and eating disorders.

Dudley said HMSA paid her for services for seven years before they suddenly sent her a bill for $325,000 and demanded payment before she could seek arbitration.

“HMSA is essentially using its market power and claiming to be a non-profit and is basically bullying providers in the state of Hawaii,” Attorney Eric Seitz said.

Seitz wants a judge to declare it a for-profit company,

HMSA said it would not comment on pending litigation.

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