Investment earnings helped the Hawai‘i Medical Service Association (HMSA) reverse an operating loss and end the second quarter of 2015 with a net gain of $15.9 million. According to HMSA‘s quarterly financial report filed with the state Insurance division today, HMSA‘s second quarter investment earnings totaled $16.2 million.
“If you ignore our investment earnings, you‘ll see that we would have come very close to breaking even this quarter,” said Steve Van Ribbink, HMSA‘s chief financial and services officer and treasurer. “Since we‘re a nonprofit, breaking even is our goal. We only want to collect enough from our members to cover their health care benefits plus the cost of administering those benefits.”
Of the $748.8 million collected in premium revenue in the second quarter, HMSA used 92.7 percent, or $693.9 million, to pay for members‘ health care benefits. The cost of administering those benefits was $62.7 million, or 8.3 percent of premium revenue.
“Our employees take pride in delivering outstanding value to our members and the community,” said Van Ribbink. “In addition to keeping administrative costs down, we‘re helping our members and communities throughout Hawaii improve their well-being with products such as health coaching, well-being workshops, the Dr. Dean Ornish Program to Reverse Heart DiseaseTM, and more.
Van Ribbink says these well-being solutions are essential to HMSA’s vision for a healthier Hawaii. “While we can’t control the costs of expensive prescription drugs or treatment options, by working together, we can reduce the need for them.”
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.