Strong investment returns helped boost fourth quarter earnings for the Hawai‘i Medical Service Association (HMSA) in 2017. In the final three months of the year, HMSA reported investment earnings of $6.1 million, which was half of its net income of $12.2 million. The earnings will further strengthen the HMSA reserve that provides financial security for members by making sure that funds are always available to pay for health services during community health emergencies.
“Our financial stability allows us to develop new and better ways to improve the health of our members while continuing to deliver the services that have made us Hawaii’s health plan of choice,” said Michael Stollar, HMSA’s president and chief executive officer. “We work hand in hand with doctors to deliver quality care. We deliver personalized health services to members who need the most help. And we provide resources and tools to increase the number of healthy workplaces in Hawaii.”
HMSA paid doctors, hospitals, pharmacies, and other health care providers a total of $725.9 million in the fourth quarter of last year, or 87.6 percent of premiums, surpassing the minimum 80 percent to 85 percent required by the ACA’s medical loss ratio provision. Administrative costs of $87.7 million represented 10.6 percent of premium revenue, $604,000 of that was spent on 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 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.