The Hawai‘i Medical Service Association (HMSA) credits investment gains with offsetting an $8.5 million operating loss in the third quarter of this year. HMSA filed its quarterly financial report with the state Insurance Division today.
“Fortunately, we’ve had investment gains to help us make up for significant losses due to increasing drug costs associated with new specialty drugs, particularly those being used for the treatment of hepatitis C,” said Steve Van Ribbink, HMSA chief financial officer and treasurer.
HMSA also lost money this quarter due to higher than expected medical claims and lower federal reimbursements for its Medicare Advantage plan, known as HMSA Akamai Advantage.
“Taking care of our HMSA Akamai Advantage members has become especially challenging,” said Van Ribbink. “But despite the government cutbacks in Medicare payments, HMSA is committed to the seniors and disabled members that make up our Akamai Advantage family and we’ll continue to do what it takes to be here for them.”
Of the $712.6 million that HMSA collected in premiums this quarter, 92.3 percent was used to pay doctors, hospitals, and other health care providers for services provided to HMSA members. Another 8.9 percent was used for administrative expenses and ACA fees and taxes.
HMSA’s reserve at the end of the third quarter stood at $381.8 million, or $529 per member.
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.