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News Release

June 15, 2012
HMSA members receiving top value for their health care dollar

Robyn Kuraoka
(808) 948-6826

The Hawai‘i Medical Service Association (HMSA) announced today that it outperformed the federal standard for health care spending on its members.

The Affordable Care Act requires insurers to spend at least 80 percent of member dues on health care for individual plans and small businesses and 85 percent for larger employers. This is known as the medical loss ratio (MLR) provision.

In 2011, HMSA surpassed the federal requirements by spending 87.5 percent of small business plan dues on health care, 92.2 percent of individual plan dues, and 90.5 percent of large employer dues.

“This is excellent news for our members. They are receiving top value for their health care dollar,” said Executive Vice President and Chief Financial Officer Steve Van Ribbink. “Throughout our history, we have kept our administrative costs very low and devoted the overwhelming percentage of dues to our members’ health care.

“We continue to add value to our members’ health care with initiatives such our patient-centered medical home and pay-for-quality contracts with Hawaii hospitals and physicians,” said Van Ribbink. “These efforts help keep our members healthier and slow the growth of health care costs.”

The Affordable Care Act required all health plans to report their 2011 spending to the Department of Health and Human Services by June 1. Health plans that failed to meet the MLR standard must provide refunds to businesses or consumers in August.

About HMSA

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that includes representatives from health care, business, labor, government, education, clergy, and the community. HMSA is an independent licensee of the Blue Cross and Blue Shield Association.