HMSA Realizes 1st Quarter Earnings of $8.35 Million
By Robin G. Pilus
The Hawaii Medical Service Association (HMSA) ended the first quarter of the year with net earnings after taxes of $8.35 million representing 1.6% of revenue.
The company realized a first quarter net underwriting gain of $3.97 million and a realized investment gain of $3.92 million.
HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community lead board of directors that includes representatives from healthcare, business, labor, government, clergy and the community at large.
First quarter revenue from member dues was $519.04 million. Benefit expenses paid to health care providers totaled $471.01 million. Revenue and expenses were about 16% higher than the same period last year primarily due to 20,000 new members enrolled in HMSA’s new Medicare Advantage Plan, Akamai Advantage.
On average, HMSA paid physicians, hospitals, pharmacies and other healthcare providers more than $157 million per month through the first quarter of 2011 and ended the quarter with 694,436 members.
Steve Van Ribbink, executive vice president and chief financial officer said, “We are working very hard with Hawaii’s hospitals, physicians and health care professionals to ensure the best possible care and greatest value for our members and the community.”
Total administrative expenses for the first quarter were up $1.36 million which represented a 3.3% increase from the same time last year. The increase was attributed to the adminstrative demands of enrolling the 20,000 new members in to the Akamai Advantage Plan.
HMSA is an independent licensee of Blue Cross and Blue Shield Association. Nationally HMSA and 38 other licensees provide healthcare to over 100 million members worldwide.