The Hawai‘i Medical Service Association (HMSA) reported a net gain of $56.8 million for the second quarter in its financial filing with the state Insurance Division. This helps offset the $67.8 million in Affordable Care Act (ACA) fees the company recorded in the first quarter. The National Association of Insurance Commissioners requires all health plans to record a year’s worth of ACA fees and taxes in January.
HMSA’s financial stability allows it to continue making strategic investments in the health of members and the state of Hawaii. “The best way to keep health care affordable for everyone is to improve the health and well-being of our members and communities,” said Michael Stollar, HMSA president and chief executive officer.
“We have strong partnerships with doctors and hospitals to deliver the best patient-centered care, we support communities on their well-being journeys, and we continue to work with businesses to create a culture of good health for their employees.”
HMSA collected $894.3 million in premium revenue for the second quarter. The health insurer paid $768.7 million for its members’ medical and hospital benefits and $80.1 million for administrative expenses and ACA fees. HMSA reported an investment gain of $5.8 million.
The health plan’s reserve was $509 million at the end of the quarter. HMSA’s reserve protects members, employers, 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.