Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, March 3, 2006

Hawai'i's No. 2 insurer suffers net loss of $456,000

Advertiser Staff

Kaiser Foundation Health Plan Inc.'s Hawai'i region, the state's No. 2 insurer, swung to a net loss of $456,000 after reporting net income in 2004. Kaiser ended the year with 226,000 members.


Revenue: $830 million vs. 2004's $786.4 million

Operating Expenses: $840 million vs. 2004's $781 million

Operating Income: -$10.2 million vs. 2004's $5.4 million

Investment Income: $9.7 million vs. 2004's $5.9 million

Net Loss/Income: -$456,000 vs. 2004's $11.3 million


  • Kaiser's 278 hospital beds were full for most of the year, forcing it to send members to other facilities for care.

  • The loss would have been larger if not for an increase in investment income.

  • Kaiser's fourth-quarter net loss was $5.3 million compared with net income of $2.2 million a year earlier.


    "Managing our costs for hospitalization, both inside and outside of Kaiser Permanente, was a tremendous challenge."

    Jan Head
    Kaiser Foundation Health Plan Hawaii President


    Kaiser will continue work on a new five-story tower at its Moanalua Medical Center.

    The insurer's revenues will increase this year because of a 3 percent increase in premiums for business and government employers. The rate hike went into effect on Jan. 1.

    Kaiser is continuing to work on programs to moderate operating cost increases.