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What happened to HMSA's income, and what it may mean | The Honolulu Advertiser | Hawaii's Newspaper
Posted on: Thursday, August 18, 2005

What happened to HMSA's income, and what it may mean

Advertiser Staff
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Higher healthcare and administrative costs contributed to a 35 percent decline in Hawaii Medical Service Association's second-quarter 2005 income.

Second-quarter results Reasons What they are saying What's next

REVENUE: $425.2 MILLION

NET INCOME: $4.9 MILLION

INVESTMENT INCOME: $7.1 MILLION

FISCAL 2004 REVENUE: $393.3 MILLION

FISCAL 2004 NET INCOME: $7.5 MILLION

2004 INVESTMENT INCOME: $4.8 MILLION

Total assets: $848.2 million

  • Healthcare costs rose 9.1 percent to $390.6 million in the quarter compared with the year-earlier period.

  • Administrative costs also rose 9.1 percent to $33.8 million from the previous second quarter.

  • The higher costs were partly offset by a 50 percent increase in HMSA's investment income.

    "Hospital services and prescription drugs are driving healthcare costs higher in Hawai'i. ... Overall, healthcare costs rose 7.6 percent in the first quarter and 9.1 percent in the second."

    Steve Van Ribbink
    HMSA chief financial officer

    If healthcare costs continue to rise, HMSA said, it may have to file a request with the state to raise premiums on its health plans next year.
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