The Hawai‘i Medical Service Association (HMSA) is reporting a year-to-date loss of $8.4 million according to numbers filed with the state insurance division today in the company’s second quarter financial statement. A first quarter loss of $30.1 million, which was largely attributed to Affordable Care Act (ACA) fees and taxes, was offset by a gain in the second quarter.
“Our year-to-date loss isn’t where we want to be, but we’re definitely in a better place than we were at the end of March,” said HMSA Chief Financial Officer and Treasurer Steve Van Ribbink.
Of the $730.4 million that HMSA collected in premiums this quarter, 89.3 percent was used to pay doctors, hospitals, and other health care providers for services provided to HMSA members. Another 8.4 percent was used for administrative expenses.
Because of the ACA, health insurance companies are required to spend a certain percentage of the premiums they collect on their members’ health care. Companies that failed to do so had to issue rebates last month. “I’m proud to say that HMSA was not one of them,” said Van Ribbink.
“It’s a struggle to live in Hawaii and make ends meet for businesses and individuals. When we set premiums, we put every effort into making sure we collect only what’s necessary to cover the cost of making sure our members’ health care needs are met. It’s this dedication to the people we serve that’s earned us the trust of more than 700,000 Hawaii residents who choose HMSA.”
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.