HMSA in good health with solid first-quarter earnings
Advertiser Staff
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
REASONS
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 RibbinkHMSA executive vice president and chief financial officer
WHAT�S NEXT
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.
