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News Release

August 15, 2012
HMSA spends 91 percent of Q2 dues on members’ health care

Robyn Kuraoka
(808) 948-6826

The Hawai‘i Medical Service Association (HMSA) announced today that it paid 90.7 percent of the member dues it collected in the second quarter of the year to physicians, hospitals, pharmacies, and other health care providers. Of member dues, 8.6 percent covered administrative expenses, leaving HMSA with a net underwriting gain of 0.7 percent for the quarter.

“Every year, we challenge ourselves to make the high-quality health care our members deserve accessible without taxing their already strained budgets,” says Steve Van Ribbink, HMSA executive vice president and chief financial officer. “We do this by emphasizing the importance of preventive care, embracing the latest technology, and supporting the essential relationships between our members and their doctors. That’s why HMSA members are getting better care than ever before, and our doctors have better tools and more incentive to deliver that care. It’s all about giving good value and I’m proud to say that we’ve accomplished that.”

The small underwriting gain of $4.20 million plus a net investment gain of $4.56 million was added to HMSA’s reserve. The reserve protects HMSA members, employers, and providers from losses, and is periodically used to fund special health initiatives. At the end of the second quarter, HMSA had 699,771 members and the reserve stood at $431.30 million or $616 per member.

Year to date, HMSA collected $1.23 billion in member dues and paid $1.21 billion in benefits and administrative expenses. In short, 99.1 percent of member dues covered benefits and operating costs. HMSA ended the first six months of this year with a net underwriting gain of 0.9 percent of revenue. This compares to a net underwriting gain of 0.5 percent of revenue for the first six months of last year.

HMSA is a nonprofit, mutual benefit society 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.