News Release
May 18, 2010
Investments help HMSA achieve modest first-quarter gain
Laura Lott
(808) 952-7566
laura_lott@hmsa.com
The Hawaii Medical Service Association (HMSA) ended the quarter with net income
after taxes of $1.52 million after factoring in investment income. This represents
0.5 percent of revenue and compares to a net loss of $13.92 million for the first
quarter of last year.
In the first three months of 2010, 92.4 percent of members’ dues were paid
directly to physicians, hospitals, pharmacies, and other health care providers.
On average, HMSA paid providers more than $133 million per month during the first
quarter of the year.
HMSA Dues Revenue, Benefits and Expenses
First-quarter revenue from member dues was $433.88 million. Benefit expenses paid
to health care providers totaled $400.89 million. For the same period last year,
revenue was $398.57 million and benefit expenses were $378.11 million.
The net underwriting loss in the first quarter was $8.71 million, but investment
income of $7.97 million from the HMSA reserve helped turn the loss in to net income
of $1.52 million after taxes.
“As always, we’re working very hard to generate the greatest value for
our members, and I’m pleased to report that our ongoing efforts are paying
off,” said Steve Van Ribbink, HMSA executive vice president and chief financial
officer. “At HMSA, we continue to focus on increasing operational efficiencies
and holding the line on expenses.”
HMSA Health Plan Reserve
The HMSA reserve funds special initiatives and protects members, employers and providers
from losses and emergencies. HMSA has 682,751 members, and the reserve stands at
$350.72 million, or $514 per HMSA member.
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 at large.
HMSA is an independent licensee of the Blue Cross and Blue Shield Association. Nationally,
HMSA and 38 other Blue Cross and Blue Shield plans provide worldwide coverage to
more than 100 million members.
####