HMSA filed its third quarter financial report with the state Insurance division today, reporting a loss of about $5 million after taxes. Gina Marting, HMSA’s senior vice president of accounting and finance, said that despite the loss, HMSA continues to remain financially sound.
“This is mainly because we’ve invested wisely and we’ve been able to depend on our financial reserve,” said Marting. “But we can’t afford to continue at this pace.” Marting says the increasing cost of medical and prescription drugs contributed to HMSA’s losses. She also points to losses in HMSA’s Affordable Care Act individual plans.
“This isn’t the first time HMSA has faced challenges,” said Marting. “We understand challenges and know what needs to be done. As we make adjustments and identify areas where we can improve, our priority is to continue providing our members and employer groups with high-quality service and the outstanding value they’ve come to expect from HMSA.”
Of the $748.8 million that HMSA collected in premiums this quarter, 91.8 percent was used to pay doctors, hospitals, and other health care providers for services provided to HMSA members. About 9.4 percent was used for administrative expenses and ACA fees and taxes. At the end of the third quarter, HMSA’s reserve stood at $331 million, or $455 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.