June 15, 2012
HMSA members receiving top value for their health care dollar
The Hawai‘i Medical Service Association (HMSA) announced today that it outperformed
the federal standard for health care spending on its members.
The Affordable Care Act requires insurers to spend at least 80 percent of member
dues on health care for individual plans and small businesses and 85 percent for
larger employers. This is known as the medical loss ratio (MLR) provision.
In 2011, HMSA surpassed the federal requirements by spending 87.5 percent of small
business plan dues on health care, 92.2 percent of individual plan dues, and 90.5
percent of large employer dues.
“This is excellent news for our members. They are receiving top value for
their health care dollar,” said Executive Vice President and Chief Financial
Officer Steve Van Ribbink. “Throughout our history, we have kept our administrative
costs very low and devoted the overwhelming percentage of dues to our members’
“We continue to add value to our members’ health care with initiatives
such our patient-centered medical home and pay-for-quality contracts with Hawaii
hospitals and physicians,” said Van Ribbink. “These efforts help keep
our members healthier and slow the growth of health care costs.”
The Affordable Care Act required all health plans to report their 2011 spending
to the Department of Health and Human Services by June 1. Health plans that failed
to meet the MLR standard must provide refunds to businesses or consumers in August.
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. HMSA is
an independent licensee of the Blue Cross and Blue Shield Association.