The Hawai‘i Medical Service Association (HMSA) says its third quarter earnings will help offset a first quarter loss of $30.4 million, which was largely attributed to Affordable Care Act (ACA) fees and taxes. HMSA reported a $17.8 million gain according to numbers filed with the state Insurance Division today in the company’s third quarter financial statement. HMSA is currently reporting a year-to-date loss of about $236 thousand.
Of the $801.4 million that HMSA collected in premiums this quarter, 90 percent, or $721.7 million, was used to pay for physicians, hospitals, and other health care goods and services provided to HMSA members.
“Every year, we see a rise in the cost of the medical care and prescription drugs that our members use,” said HMSA President and Chief Executive Officer Michael A. Gold, “and this year is no different. The good news is that we’ve been working very closely with Hawaii’s providers and employer groups to invest and implement new and innovative programs like HMSA’s care model and Blue Zones Project® that seem to be paying off.”
About 7.1 percent of member premiums, or $56.4 million, was used for administrative expenses. $3.4 million was used to pay ACA fees and taxes.
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 and offices statewide to serve our members, HMSA is an independent licensee of the Blue Cross and Blue Shield Association.