The Hawai‘i Medical Service Association (HMSA) recorded $67.9 million in ACA taxes and fees in the first three months of the year, resulting in a $17.6 million net loss for the quarter. HMSA records a year’s worth of ACA fees and taxes in the first quarter, as required by the National Association of Insurance Commissioners. Last year, this requirement was waived.
“While we recorded a loss this quarter, HMSA continues to be financially stable. Our stability allows us to care for our members and work every day to improve their health and well-being,“ said Michael B. Stollar, HMSA president and chief executive officer.
HMSA collected $876.3 million in premium revenue for the first quarter. The health insurer paid $757.6 million for its members’ medical and hospital benefits and $142.8 million for administrative expenses and ACA fees. HMSA reported an investment gain of $4.5 million.
The health plan’s reserve was $462 million at the end of the quarter. HMSA’s reserve protects members and providers during a community health emergency.
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.