Affordable Care Act Fees and Taxes Lead to a Q1 Loss for HMSA
The Hawai‘i Medical Service Association (HMSA) announces that it recorded $67.9 million in ACA taxes and fees in the first three months of the year, resulting in a $17.6 million net loss for the quarter. HMSA records a year’s worth of ACA fees and taxes in the first quarter, as required by the National Association of Insurance Commissioners. Last year, this requirement was waived.
“While we recorded a loss this quarter, HMSA continues to be financially stable,” said Michael B. Stollar, HMSA president and chief executive officer. “Our stability allows us to care for our members and work every day to improve their health and well-being.”
HMSA collected $876.3 million in premium revenue for the first quarter. The health insurer paid $757.6 million for its members’ medical and hospital benefits and $142.8 million for administrative expenses and ACA fees. HMSA reported an investment gain of $4.5 million.
The health plan’s reserve was $462 million at the end of the quarter. HMSA’s reserve protects members and providers during a community health emergency.
Caring for the people of Hawai‘i is our promise and our privilege. Working together with employers, partners, and physicians and other health care providers, we promote wellness; develop reliable, affordable health plans; and support members with clear, thoughtful guidance.
HMSA is the most experienced health plan in the state, covering more than half of Hawaii’s population. As a recognized leader, we embrace our responsibility to strengthen the health and well-being of our community.
Headquartered on O‘ahu with centers and offices statewide to serve our members, HMSA is an independent licensee of the Blue Cross and Blue Shield Association.