HMSA loses $17.6M in quarter; Kaiser posts smaller profit
- By Kristen Consillio kconsillio@staradvertiser.com
-
May 16, 2018
Hawaii Medical Service Association continues to blame its financial losses on the federal Affordable Care Act, which has expanded the number of people with health insurance across the nation.
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Hawaii Medical Service Association continues to blame its financial losses on the federal Affordable Care Act, which has expanded the number of people with health insurance across the nation.
The state’s largest health plan reported a loss of $17.6 million in the first quarter, reversing a first- quarter gain of $25 million in 2017.
HMSA collected $876.3 million in premiums, up from $828 million in the year-earlier period. It paid $757.6 million in medical benefits versus $730.8 million. But administrative expenses doubled to $142.8 million from $70.7 million. That’s because $67.9 million in ACA taxes and fees was booked in the first quarter, though it accounts for the full year.
“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,” Michael Stollar, HMSA president and chief executive officer, said in a news release.
| HMSA
THIRD-QUARTER LOSS
$17.6 million
YEAR-EARLIER NET
$25 million
KAISER
THIRD-QUARTER NET
$9.1 million
YEAR-EARLIER NET
$14.7 million
|
HMSA’s operating loss totaled $24.1 million in the first quarter, compared with a gain of $26.6 million in the year-ago quarter. Investment gains slipped slightly to $4.5 million from $4.6 million. Total reserves, however, for its 736,259 members grew to $462 million from $446.5 million, or $627 per member.
Meanwhile, Kaiser Permanente Hawaii — both a health insurer and medical provider — narrowed its earnings to $9.1 million in the most recent quarter, from $14.7 million a year ago. The state’s largest health maintenance organization’s revenue grew to $406.9 million from $366.3 million, while expenses rose to $399.1 million from $352.5 million. The company’s operating income dropped to $7.8 million from $13.8 million, but a slight increase in investment and other income to $1.3 million from $900,000 helped boost the bottom line.
Kaiser’s health plan has grown by more than 3,000 members over the last year with total membership at 255,828 at the end of March.
“As a non-profit health plan, we are committed to our member’s total health. We are increasing convenience and redefining choice for our members,” Dan Shaw, chief financial officer, said in a news release, adding that the HMO will open a new Sleep Center in early June. “We continue to make significant investments in our facilities and confirm our commitment to the total health of Hawaii.”
The company is significantly growing in the islands.
Kaiser recently purchased the land under its Wailuku Medical Office for $22 million for potential expansion and has 21 facilities statewide. It assumed control of three Maui County hospitals July 1 in the largest privatization in state history and pledged to inject more resources into Maui Memorial Medical Center, Kula Hospital & Clinic and Lanai Community Hospital, the only acute-care facilities for about 200,000 residents and visitors in Maui County.
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