Posted at 11:00 a.m., Wednesday, August 17, 2005
HMSA earnings fall 35 percent in second quarter
Advertiser Staff
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The state's largest medical insurer earned $4.9 million during the three months ending June 30, 2005, down from $7.5 million in the same quarter last year.
HMSA said its revenues increased to $425.2 million during the latest quarter from $393.3 in the year-earlier period. But benefit expenses jumped to $390.6 million during the recent second quarter from $358.1 million in the year-earlier period.
Administrative expenses also rose during the comparable period to $33.8 million from about $31 million.
"Hospital services and prescription drugs are driving health care cost higher in Hawaii," said Steve Van Ribbink, HMSA's chief financial officer. "If this continues through the remainder of the year, we may be forced to look at higher health plan rates next year."
