Cost of Living by State.org » Cost of Living in Hawaii

The Latest on Health Care cost in Hawaii

Bill — Tue, 29 Nov 2011 21:11:28 +0000

Cost of living in Hawaii could be on the rise again in lieu of proposed Health care increases. Kaiser Permanente and the Hawaii Medical Service Association are lobbying the state division to raise premiums upwards. Unfortunately this is a nation wide trend but Hawaiian’s can not afford yet another raise in their cost of living. With a weak economy and job market along with high energy and food costs the citizens of Hawaii are already finding it difficult to make ends meet.

The Proposed Raise in Insurance Premiums

The Hawaii Medical Service Association after raising premiums 11.7% two years ago and 14.8% this year are trying to increase rates for 84,000 members by 3.6% starting next year. HMSA is celebrating a $5.8 million profit this quarter and hopes to host an even bigger party at the end of the 1st quarter next year. They did post a $4.1 million loss a year earlier.

The state division has received a proposal from Kaiser Permanente to raise their premiums 8.8%. This would affect 160,000 members. This increase would also start at the beginning of the year. Kaiser enjoyed a $2.8 million profit in the second quarter following increases of 12.6% this year and 10.7% last year. They lost $5.1 million last year.

The federal health reform act if passed will require insurers to submit a request for approval to state or federal reviewers for increases of 10% or more. Note the 2 above provider’s rate increases are reduced from double digital percentages last year to single digit percentage next year. Just an after thought!

The Average Cost of Medical insurance in Hawaii

Medical insurance premiums across the board increased from 12.3% to 17.8% according to a recent report. The annual yearly premium cost is projected to reach 20k by 2020 for families and $7,000 for individuals. Hawaii at this time is at the low end when compared to the rest of the nation. Hawaii currently ranks 3rd lowest in family premiums. Health care premiums averaged $12,00 last year. The U.S. average was $13,871. For individual coverage Hawaii’s cost is the 2nd lowest with an average price of 4,000 a year. We could obtain the national average for individuals.

How Energy Comsumption affects the Cost of Living for every Hawaiian

Bill — Tue, 29 Nov 2011 18:13:27 +0000

Hawaii is in dire straits when it comes to energy. Although Hawaii has taken enormous strides to develop alternative energy projects it still is a long way from getting its fossil fuel dependency under control. The cost to Hawaiian is nothing less then shocking. Hawaii ranks 2nd now to Connecticut in energy consumption.

The Facts Regarding the Cost of Energy in Hawaii

How does energy consumption affect the cost of living in Hawaii and what steps are being taken to reduce Hawaii’s fossil fuel reliance? Also – Rebates for Hawaiians looking to buy Green.

Last year Hawaii utilities used 11.3 million barrels of petro to produce energy at a cost of almost $900 million. This is a huge number when compared to per capita numbers in other states.

Hawaiians spend roughly $175 per month on electric bills and consumed an average of 615 kWh monthly.

46.3 million barrels of petroleum were imported last year. Divide this by the population and you get 36.776 barrels of petroleum per person. Import costs total over 4 thousand per person every year. These numbers are almost unbelievable. How much do you think this impacts the cost of living in Hawaii?

If Hawaii’s Clean Energy Initiative goals are met, it is estimated that 60% of all electricity provided by utility companies will be as a result of fossil fuel.

Hawaii’s Green Potential

A significant portion of energy needs could be met by renewable resources and energy optimization.

Hawaii has a huge advantage in promoting energy efficiency in current buildings as well as constructing “net-zero energy” buildings that have the potential to generate as much energy as they consume.

Hawaii is blessed with many natural resources such as wind, hydroelectric, solar, geothermal, bio fuels produced by agriculture, and the ocean.

Energy Rebates Available for Hawaiians

Whole House Energy Monitor – 50% of the purchase price up to $100
$750 Solar Water Heating
$1,000 Solar Water Heating Interest loan Credit
$200 Heat Pump Water Heater

Solar Attic Fan – $50 | Whole House Fans – $75

Central AC Maintenance – $50

ENERGY STAR® Refrigerators with the purchase price of $600 or less – $50
ENERGY STAR® Refrigerators with Trade-in – $125
$50 ENERGY STAR® Top Tier Clothes Washers
$40 ENERGY STAR® Ceiling Fans
$110 ENERGY STAR® Ductless Split Air Conditioners
ENERGY STAR® Variable Refrigerant Flow Air Conditioners- $200

Instant $1 rebates on Compact Fluorescent Lamps

What is driving the cost of living in Hawaii

Bill — Tue, 29 Nov 2011 02:50:06 +0000

Lack of Competition in Shipping raises cost of living in Hawaii

Maritime laws in Hawaii prevent foreign ships from competing in the marketplace by limiting restrictions. These restrictions in-turn monopolize shipping hence raise prices to import and well as export. Since Hawaii imports most everything the effect on cost of living is far reaching. In particular the Jones Act and the Commerce Clause hindered the above stated. 95% of the available worldwide Merchant shipping fleets can not serve Hawaii.

Agriculture in Hawaii is suffering due to the expense of agricultural production. Specifically inbound shipping cost of fertilizers, herbicides and outbound shipping costs of fruits and livestock.

The amount of preservative chemicals it takes to keep food fresh while in route inflate prices. One of the reasons why food is more expensive in Hawaii is by virtue of the time it takes to get to the store. Supply issues are also affecting prices. This is all do to lack of competition in the shipping department.

Food prices in Hawaii are adversely affected by the Jones Act and the cost for local businesses to ship goods are so expensive it is ruining local economies. Hawaii is completely Mad Cow disease free and has a huge competitive advantage world wide. But shipping costs prevent Hawaii from being able to compete price wise.

What is the Jones act

The Merchant Marine Act of 1920 Section 27,states all goods transported between U.S. ports will be carried in American ships, made in America, owned and crewed by U.S. citizens. The law was invented to support the U.S. maritime industry.

What is The Commerce Clause

The Commerce Clause states that the United States Congress shall have power “To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes. Dispute exists within the courts as to the range of powers granted to Congress by the Commerce Clause

Advocating the Jones Act

Advocators of the Jones Act state that it is necessary to enforce the United State’s environmental and labor laws as well as protect national security.

Opponents of the Jones Act

Opponents argue that the Jones Act is costing Hawaiian households an estimated $3000 per year. And that abolishing the law will open up competition, lower shipping costs and unsure that consumers are getting the best products at the best prices while giving the local economy a much needed boost.

Hawaii is cutting costs on Welfare

Bill — Fri, 18 Nov 2011 21:52:25 +0000

The cost of living in Hawaii is as steep as the money it takes to run it. This is according to recent reports and a statement made by the Department of human services. The decision to cut vital welfare programs has received a mixed reaction among citizens and community leaders alike.

Cutting benefits to citizens whom aren’t encouraged to find work is one thing. Reducing benefits to what looks like on paper a program that encourages working is another.

In The News

Hawaii until recently has been the nation’s biggest spender in welfare benefits.
Budget cuts are forcing the state to eliminate programs to welfare recipients.
Temporary assistance to needy families (TANF) and temporary assistance to other needy family (TAONF) are the programs on the chopping block.

What is TANF and TAONF?

TANF and TAONF are intended to provide assistance for those who can’t work and provide incentives for those whom are able to work to find work. These programs offer money to adults and children for a period of 5 years once in a lifetime. TANF & TAONF are unique in the fact that they encourage people to rely on themselves to sustain and makes it pay to work. This is accomplished by providing child care support, enforcing penalties, and tapering off benefits when work is found. This is opposite of most programs that cut off benefits completely.

Reduced Benefits

Welfare benefits are being reduced due to state mandated budget cuts. Hawaii spends $5.4 million on programs designed to aid recipients in finding work. According to Hawaii’s Department of human services these programs will be terminated at the end of this month.

Historical Data

Eligibly for 539 families expired in late 2001, in 2003 their were over 1200 cases that reached the five year limit. By year 2004 852 cases expired and 708 in the year 2005.

Hawaii Cost of Living Data 11-16

Bill — Wed, 16 Nov 2011 02:25:01 +0000

Hawaii cost of living data for 2011 is very poor. Projections for the next 3 years are equally so. Hawaii’s lack of growth is severely hurting jobs growth. Inflation is crippling the middle class and there is no end in sight. Recovery needs a huge economic turn-around. Unfortunately Hawaii is just no experiencing enough to pull itself out of the recession. The economic decline is felt across the U.S but Hawaii ranks at just about the bottom.

Looking at Hawaii’s growth this year

According to the U.S. Commerce Department Hawaii’s economy had poor growth. Registering at 1.2 percent this is effecting the job market hence Hawaii cost of living. When factoring in inflation Hawaii’s economic growth has is 2.6%. When jobs growth is low and inflation is high. The cost of living in Hawaii increases.

Out of 50 states Hawaii’s growth rate ranked 44th. This is a huge drop in ranking when compared to past years. Hawaii’s economy growth in the prior year was 2.6 less than in 2009. This is not an encouraging stat when considering we were in the middle of the recession at that time.

Various state departments are projecting that Hawaii’s cost of living will increase when factoring in inflation adjusted economic growth. It is projected increase is 2% by 2012 and 2.4% by 2013. This is huge when considering the majority of this statistic is made up of an inflating dollar.

Hawaii’s Growth

So enough of the negatives lets take a look at the positives. There has to been a silver lining in this cloud right? Well not much to shout about here.

On the positive side of the equation Hawaii saw good growth in the tourism, real estate, retail and food sectors.

Conversely the negatives were manufacturing, agriculture, and construction.

The Commerce Department’s finding are based and Gross Domestic Product. This is factoring in the total of all goods and services produced in Hawaii.

Read more articles on Hawaii cost of living

Cheapest Cost of Living in Hawaii

Bill — Sun, 06 Nov 2011 17:54:16 +0000

There are many factors that drive the cost of living in Hawaii. High cost of food, Gas and home prices are all contributors to this. The job market is tough in Hawaii. Having a job most likely means you are working in the tourism industry. Needless to say these jobs don’t pay well. But there is hope. The ability to thrive in Hawaii on a budget is not out of reach. Hawaii is a great place to live. With its topical beaches, Volcanoes, and island culture it is one of the greatest places on Earth. We will give you a guide to survive by lowering your cost of living so you can afford Hawaii.

How to Live Cheap in Hawaii

Living Space

Don’t be picky out where you’re living. It is just a place to hang your hat. With Hawaii’s weather you will be spending a lot of time outdoors. Seek out a shared apartment. Shared apartments in the more populated areas go for $700 to $900 a month.

Use Public Transportation or Ride a Bike

Public transportation in Hawaii is cheap. The buses will basically take you anywhere you what for under $2. Riding a bike is a great way to experience Hawaii. Riding is cost effective and great for your health. With the price of gas being well over $4 per gallon you may also want to consider a fuel efficient car if busing or biking it isn’t for you.

Shop Smart

Buy your clothes at the Goodwill or second hand stores.You can find clothes of the same quality for a fraction of the price. Food is very expensive in Hawaii but there are still bargains if you know where to look. On the weekend you can find some cheap farmer’s markets with quality organic foods. Star Market and Foodland have the most affordable priced foods. Keep an eye out for weekly specials on essential items.

Nothing in Hawaii is cheap. The cost of Living in Hawaii is one of the highest in the world. But there are some things you can do to pad the blow. Learn more about Hawaii

Why the cost of living in Hawaii is More

Bill — Sun, 06 Nov 2011 17:46:15 +0000

Hawaii ranks in the top 5 in every cost of living category. From Gas to real estate the cost is high to live in Hawaii. A big piece of the puzzle is the fact that Hawaii is an island thus has to import everything but it is easy to forget that it’s also a tropically paradise. This natural drives the cost of things a bit higher. Knowing this it is still worth to explore what effects the prices of these items so high.

The Price of Food

Food is very expensive in Hawaii. What drives the cost of food is the fact that 90% of Hawaii’s food is imported. It is purely Supply vs. Demand that makes the cost of food in Hawaii so high.
A gallon of milk in Hawaii is anywhere from $4.99 to $7.49. Eggs are $1.99 to 2.69 a carton. Ground beef costs $2.68 to $3.29 a pound. Chicken ranges from $1.49 to $2.06 a pound. A 12 pack of Coke can cost anywhere from $3.65 to $6.19.

Gas prices

The cost to drive is a huge factor in Hawaii. We have some of the highest gas prices in the nation here. The cost of gas varies depending on where you live and they are in constant flux. Gas right now is ranging from $4 to $5 per gallon.

Home prices

Although home values have gone down due to the recession Hawaii is still in the top tier. The medium home price is 438k. In the Hilo metro area it’s around 212k, the most affordable of all. This is much lower than 3 years ago.

Why is the price of living in Hawaii is so much higher? The answer is simple, it is Hawaii! Hawaii is a huge tourist destination and for good reason. Many folks would love to live here. But the lack of a job market and cost of living derail those hopes.

There are some strategies to living cheap in Hawaii read
this article for more information.

Learn more about the cost of living in Hawaii

Cost of living in Hawaii 2010

Bill — Sun, 06 Nov 2011 01:44:47 +0000

2010 brought in a decrease in home value. The cost of food increased as well as essential services. The Cost of living in Hawaii is as much above the national average as it has been in the past for the most part. Food would be the only exception. The follow is a breakdown of how Honolulu Hawaii ranks. Keep in mind one hundred is the national average.

Cost of living Index

Cost of living in Hawaii for the city of Honolulu is 66% higher than the national average. The main reason is the housing index even though home prices have gone down in 2010. The job market and medium salary wont be discussed in this article but are a contributing factor because wages have decreased this year.

Goods and Services Index

This year the Goods and services index is holding steady at 127. This gap is consistent with the gap last year. There has not been much change this is category this year.

Grocery Index

The cost of food has gone up but Hawaii doesn’t gain much ground when compared to the rest of the nation. The index for food is 159. Hawaii’s food is as always imported. This year saw consumers getting less food for there dollar. The increase was similar through out the nation.

Housing Index

Across the nation home prices are going down. It is safe to assume that Hawaii would not be exempt to this. But when compared to the average in America Hawaii is 244. This as stated earlier is what is driving the cost of living in Hawaii to extraordinary heights.

In 2010 Hawaii keeps its ranking in the cost of living index. Hawaii is well above the 100 percentile in every category. Here are some other statistics worth noting.

Health Care Index- 122
Transportation Index- 130
Utilities Index- 140