By Kristen Consillio

HONOLULU (Island News) — Healthcare costs are rising by an average 10% for roughly half a million residents covered by employers with the Hawaii Medical Service Association.

That includes Rick Nakashima’s 135 employees at Ruby Tuesday.

“It’s just one more thing that’s hit us and hit small businesses in Hawaii,” he said.

The double-digit increases reflect the years-long trend of spiking medical costs, placing a huge burden on individuals and businesses struggling to survive.

“It’s really scary and it’s why you see restaurants closing up and some other small businesses,” Nakashima said. “Is you just can’t pencil out the numbers, and we can’t go out there and sell a cheeseburger for $35.”

Hawaii Medical Service Association (HMSA) said costs are driven by more people using health care benefits.

“We encourage folks to get the proper screenings, work with their PCP to manage their health and be proactive with that,” said Dale Goya, HMSA Vice President of Account Management & Sales. “We’re also working with our provider partners to ensure that we’re providing the right care in the right settings.”

But for local businesses, it’s just adding more pressure to an already tough environment.

“The cost of doing business here in Hawaii is very challenging and when you combine it with tariff situation, the Iran situation, amongst other global and national climates, it just makes it much harder for these local businesses to continue to keep their doors open,” said Sherry Menor, head of the Chamber of Commerce Hawaii.

And it’s all causing a trickle-down effect.

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