Kaiser Permanente Hawaii’s profits soared more than seven times in the third quarter to $1.5 million as more members signed up with the state’s largest health maintenance organization.
The HMO reported Monday that revenue rose to $306.5 million from $291.1 million in the year-earlier quarter. Expenses totaled $305.8 million compared with $292.2 million, resulting in operating income of $700,000.
Investment gains of $800,000 boosted net income to $1.5 million, up from $200,000 in the year-ago period.
"We’ve grown by 6,000 members in the last 12 months; that’s been one of the key drivers," said Thomas Risse, Kaiser’s chief financial officer.
That included an increase in members via the Hawaii Health Connector, the state’s online health insurance marketplace created by the Affordable Care Act, as well as Medicare, the government insurance program for seniors, and workers employed by the state.
"We’ve had a real focus on building (membership) and being No. 1 in the state in all three business lines," Risse said. "People are watching quality measures. Year-over-year operating expenses have barely grown. We’re really driving affordability being one of our key tenets."
Kaiser is the only insurer selling health plans for businesses on the Connector, resulting in a virtual monopoly on the group market on the exchange.
"It’s our intention to maintain top quality and top service," Risse said. "It’s our intention to redefine what affordable health care is in the state of Hawaii. I’m excited about the future. We’ve made major investments in our infrastructure and capacity so we’re ready and able to grow."
The state Insurance Division recently approved an average 9.2 percent rate hike for 9,600 individuals covered by Kaiser, which is also dropping rates by 2.8 percent for 4,800 small businesses with roughly 26,200 members on Jan. 1. The insurer has 230,500 total members.
