Members of the Hawai‘i Medical Service Association (HMSA) used more health care benefits than they paid for in the second quarter of 2013. HMSA reported a net loss of $2.3 million for the quarter that ended on June 30.
“Health care is expensive. That’s one of the main reasons why it’s so important for people to have health insurance,” said Steve Van Ribbink, chief financial and services officer of HMSA. “Our 75 years of experience has taught us to anticipate periods like this. We put money aside into our reserve to make sure our members are covered even when they pay less than what it costs for their health care.”
HMSA was able to offset an operating loss of $21 million through net investment income of $15.4 million, a federal tax benefit, and approximately $2.3 million from its reserve.
“Our reserve is not nearly as high as we’d like it to be,” said Van Ribbink. “We aim to keep at least three months of premiums to cover members in periods like this. Right now, we have a little more than two months.”
HMSA had 719,977 members at the end of the second quarter. The HMSA reserve stood at $442.11 million. This is equal to about $614 per member.
Caring for the people of Hawaii is our promise and our privilege. Working together with employers, partners, and physicians and other health care providers, we promote wellness; develop reliable, affordable health plans; and support members with clear, thoughtful guidance.
HMSA is the most experienced health plan in the state, covering more than half of Hawaii’s population. As a recognized leader, we embrace our responsibility to strengthen the health and well-being of our community.
Headquartered on Oahu with centers statewide to serve our members, HMSA is an independent licensee of the Blue Cross and Blue Shield Association.