The Hawai‘i Medical Service Association reported break even operating results in its third quarter financial performance, which was filed with the state Insurance Division today. The company also reported a $14.6 million net gain from rebalancing its investment portfolio. The net gain will go into the HMSA reserve and maintain financial security for the health plan’s members.
“Our reserve provides peace of mind for our members, employers, and doctors and hospitals. It ensures that funds are always available to pay for health services during emergencies such as the hepatitis A outbreak last year,” said Chief Executive Officer Michael A. Gold.
The company’s reserve at the end of the third quarter was $462.1 million, which would pay for approximately $631 in health care expenses for each member.
HMSA collected $821.2 million in premium revenue from its members this quarter. Of that total, HMSA paid $737.5 million for member health care and $82.9 million for administrative expenses. The remainder was used for fees and taxes associated with the Affordable Care Act.
Caring for the people of Hawaii is our promise and our privilege. Working together with employers, partners, and doctors and other health care providers, we promote well-being; 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 Blue Shield Association.