While insurers across the country are getting ready to cut millions of dollars in rebate checks to their members and businesses, members of the Hawai‘i Medical Service Association (HMSA) won’t be getting a cent. That may sound bad but, in fact, it’s really good.
“Health plans have to issue rebate checks if they fail to meet the federal requirements for health care spending,” says HMSA Chief Financial and Services Officer Steve Van Ribbink. “The good news is that HMSA outperformed federal requirements. We keep our premiums as low as possible by collecting only enough to cover our members’ medical benefits and make sure we can administer those benefits accurately and efficiently.”
Beginning in 2011, the Affordable Care Act’s medical loss ratio (MLR) provision required HMSA and other insurers to spend at least 80 percent of each dollar they collect on care for their members. In 2012, HMSA spent 90.3 percent of premium dollars on its individual plan members, 92.4 percent of premium dollars on its small group members, and 91.7 percent of premium dollars on its large group members.
“If you look at HMSA’s 75-year history, I’m confident you’ll have a difficult time finding another health plan that gives back to its members like we do,” said Van Ribbink. “This is a source of pride for us and we work very hard to make this happen.”
Caring for the people of Hawaii is our promise and our privilege. Working together with employers, partners, and physicians and other health care providers, we promote wellness; develop reliable, affordable health plans; and support members with clear, thoughtful guidance.
HMSA is the most experienced health plan in the state, covering more than half of Hawaii’s population. As a recognized leader, we embrace our responsibility to strengthen the health and well-being of our community.
Headquartered on Oahu with centers statewide to serve our members, HMSA is an independent licensee of the Blue Cross and Blue Shield Association.