August 2, 2013
No Rebates for HMSA Members. But That’s a Good Thing.
While insurers across the country are getting ready to cut millions of dollars in
rebate checks to their members and businesses, members of the Hawai‘i Medical
Service Association (HMSA) won’t be getting a cent. That may sound bad but,
in fact, it’s really good.
“Health plans have to issue rebate checks if they fail to meet the federal
requirements for health care spending,” says HMSA Chief Financial and Services
Officer Steve Van Ribbink. “The good news is that HMSA outperformed federal
requirements. We keep our premiums as low as possible by collecting only enough
to cover our members’ medical benefits and make sure we can administer those
benefits accurately and efficiently.”
Beginning in 2011, the Affordable Care Act’s medical loss ratio (MLR) provision
required HMSA and other insurers to spend at least 80 percent of each dollar they
collect on care for their members. In 2012, HMSA spent 90.3 percent of premium dollars
on its individual plan members, 92.4 percent of premium dollars on its small group
members, and 91.7 percent of premium dollars on its large group members.
“If you look at HMSA’s 75-year history, I’m confident you’ll
have a difficult time finding another health plan that gives back to its members
like we do,” said Van Ribbink. “This is a source of pride for us and
we work very hard to make this happen.”
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,
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.