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The Honolulu Advertiser
Posted on: Tuesday, August 18, 2009

Kaiser says loss of jobs led to poor 2nd-quarter results


Advertiser Staff

Kaiser Foundation Health Plan's Hawai'i region said the state's slowing economy played a factor in its second-quarter results as it announced a loss for the second time this year.

The health care plan reported a $1.6 million loss for the three months ended June 30. That followed a $300,000 loss reported in the first quarter and compared with a profit a year earlier of $1.5 million.

Revenue increased at a slower rate than did expenses, contributing to the loss.

"During the first six months of the year, we have successfully maintained our costs to provide care to our members," said Thomas Risse, vice president and chief financial officer.

"Our revenue shortfall is a direct result of the loss in members who had employer provided care prior to becoming unemployed."

Kaiser reported its membership dropped to 221,780 from about 222,000 a year earlier.

The health plan said it is continuing to expand its products and services as well as investing in new technologies. Recently it sent a mobile health clinic to the Big Island to help make health care more accessible and convenient for members.

Earlier this year, Kaiser instituted a 4.9 percent average rate increase for members.

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