HMSA in good health with solid first-quarter earnings
The Hawaii Medical Service Association, the state's largest health insurer, reported first-quarter earnings increased 12 percent from the same period a year earlier as revenue from premiums and investments rose faster than what it paid out in benefit expenses.
Net income: $8.4 million vs. $7.5 million.
Premium revenue: $443.8 million vs. $419.1 million
Investment income: $7.57 million vs. $5.76 million
Benefit costs: $396.2 million vs. $379.4 million
Administrative expenses: $42.3 million vs. $35.2 million
Reserves: $572.7 million vs. $556 million
WHAT ARE THEY SAYING?
"We may have bottomed out with the benefit expense trend in the first quarter. ... I think we'll start to see it rise above where it's been. I hope I'm wrong."Steve Van Ribbink
HMSA executive vice president and chief financial officer
HMSA will be monitoring expenses under the Medicare drug program to see if they match expectations.
The insurer is ramping up computer hardware and software spending under a $40 million upgrade program.
HMSA, mindful that benefit expenses may start rising faster, will continue to lower costs through disease management and other programs.
Correction: The Hawaii Medical Service Association had 704,592 members at the end of March, up from 691,543 a year earlier. A previous version of this story contained incorrect information.