Health insurer HMA wins contract with Local 5

Arizona-based HMA Inc., the newest entrant into Hawaii's health insurance market, said it has reached a solid agreement to administer benefits for the Hotel Employees and Restaurant Employees Local 5 trust fund. HMA will take over the contract on Jan. 1 for the 18,000-member health and welfare trust fund of Local 5. The value of the contract was not disclosed. HMA said it also plans to secure a contract for another 14,000 members in the near future.

Four companies, including local insurer Alohacare, had submitted bids for the Local 5 trust fund contract. Local 5 is currently served by troubled health insurer University Health Alliance. Two other union trusts funds, for the Teamsters and Hawaii electricians, are also served by UHA and are reportedly considering their options. UHA earned about $1.7 million last year for claims processing and other services provided to the three trust funds.

Patients give HMSA staff high marks for courtesy

In a recent survey, more than 95 percent of 53,839 members of the Hawaii Medical Service Association said they were treated with respect and courtesy by office staff and that their doctor listened to them and spent enough time with them. HMSA sent the survey to more than 120,000 of its members, and got a response rate of about 45 percent. The findings show slight improvements over previous years, the company said. HMSA provides coverage for more than half the state's 1.2 million residents.

Big investors turn down Enron request for capital

New York >> Enron Corp.'s bankers, seeking to raise as much as $2 billion for the energy trader, have been turned down by investors including Prince Alwaleed Bin Talal, the Carlyle Group Inc. and Blackstone Group LP. The fall in Enron's shares, which have lost 95 percent this year, didn't necessarily make it a good investment, said Alwaleed, a billion- aire investor from Saudi Arabia.

Enron needs the money to operate as it completes an acquisition by Dynegy Inc. The prospect that Enron will fail to line up financing, jeopardizing its plan to be acquired by Dynegy, has weighed on its stock and bonds. The company's securities gained today as talks between Enron and Dynegy to renegotiate terms of the transaction convinced some investors the takeover was more likely to take place.

Enron 6.4 percent bonds that mature in 2006, which closed yesterday at 48 cents on the dollar, rebounded to trade at about 55 cents on the dollar. At that price, the bonds yield 22.5 percent. Enron shares closed up 10 cents today at $4.11.

Kmart loss widens amid higher costs, lower sales

Troy, Mich. >> Kmart Corp., whose shares have lost more than 50 percent since August, had its third straight quarterly loss as Chairman Chuck Conaway failed to boost sales while revamping the chain's distribution centers. The loss widened to $224 million, or 45 cents a share, in the third quarter end- ed Oct. 31 from $67 million, or 14 cents, a year ago. Sales fell 2.2 percent to $8.02 billion, and were 1.5 percent lower at stores open at least a year. Conaway spent $94 million to replace two distribution centers and to install inventory software. He added self-checkout registers in 1,000 stores.