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Both the reporting and subsequent commentary on the exorbitant bonuses paid to HMSA executives by HMSA executives have shed light on why subscribers routinely pay for services HMSA refuses to cover and doctors’ struggle to be reimbursed for services they provide (“HMSA execs saw big pandemic pay raises as workers lost their jobs,” Star-Advertiser, April 30).
While these realizations are very troubling, equally as troubling is the fact that Hawaii taxpayers paid for these bonuses because HMSA enjoys nonprofit status under state law. The IRS already has determined — appropriately — that HMSA does not deserve the federal tax benefits of a nonprofit.
The state of Hawaii’s Department of Taxation should do the same and immediately revoke HMSA’s nonprofit status. It also should seek payment of back taxes for all years HMSA did not operate in a manner that warranted receiving such tax benefits from Hawaii taxpayers. Requiring that such taxes be paid from the compensation received by HMSA executives would provide a modicum of justice.
Paula Ress
Kailua
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