Hawai'i's No. 2 insurer suffers net loss of $456,000
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
WHAT THEY ARE SAYING
"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.