HMSA loses $17.4M during initial COVID-19 response

Honolulu Star-Advertiser (HI)

May 21--The Hawaii Medical Service Association lost $17.4 million in the first quarter as the global hit the islands.

The losses reversed $42.7 million in year-earlier profits as the state's largest health insurer waived the cost share for COVID-19 diagnostic tests and treatments deemed medically necessary.

The state's largest health insurer collected $884 million in premiums, down from $885.9 million in the year-ago quarter, and spent $780.1 million, compared to $792.5 million, on medical services for its 732, 550 members.

Administrative expenses dropped to $70.4 million from $81.1 million, resulting in an operating loss of $6.4 million that reversed gains of $29.9 million. Investment income totaled $4 million, down from $8.6 million, putting HMSA in the red by $17.4 million after taxes.

During the emergency, the health insurer said it allowed early refills of prescription maintenance drugs and expanded tele-health coverage, waiving all co-payments, coinsurance and deductibles. For those with HMSA dental coverage, emergency tele-dentistry visits are covered 100 % for participating providers.

"HMSA members, providers, and employer groups can be confident that we're well prepared to continue supporting them for their health and safety needs, " Executive Vice President and Chief Financial Officer Gina Marting said in a news release. "Our investments are why we now have the ability to cover tele-health and COVID-19 treatments without charging our members a co-payment. And through our Payment Transformation Program, we continue to pay our primary care providers who are using tele-health and other alternative methods of care to keep everyone safe and healthy, even if they can't visit in person."