HONOLULU (AP) - Hawaii’s largest health insurer says the Affordable Care Act is the main reason the company lost $56.9 million in the first quarter of 2015.
Hawaii Medical Services Association announced its quarterly earnings results on Friday.
The insurer pays its entire $62 million fee to the federal government in January. Last year it paid $39 million but the fee is increasing every year to pay for subsidies.
HMSA’s treasurer Steve Van Ribbink says some of the company’s loss is due to the rising cost of prescription drugs.
HMSA has more than 726,000 members in Hawaii and brought in $727 million in premium revenues in the first quarter. The company says more than 90 percent of every premium dollar went to paying doctors, hospitals and other health care providers during the quarter.
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