Unlike their larger competitors, Hawaii's third- and fourth-largest health insurers both turned modest profits in 2002. HMAA, UHA managed
gains in tough 2002By Lyn Danninger
ldanninger@starbulletin.comAccording to their latest filings with the state Insurance Division, the state's third-largest insurer, Hawaii Management Alliance Association, finished the year with a net income of more than $901,000.
HMAA added about 2,000 members during the year to finish 2002 with 28,424 members.
The company collected $59 million in premiums and paid out $43 million in claims.
Company President Arnold Baptiste Jr. attributed HMAA's profit last year to careful growth.
"The 2,000 lives we added to our membership is modest compared to other insurers but because of our conservative growth pattern, we expect to have continued success and modest growth in the coming year," he said.
Fourth in size, University Health Association also held its own despite tough times in the health care industry.
The company, which has been under state supervision since May 2001, bounced back from a 2001 loss of $470,000 to finish 2002 with a net income of $650,000.
However, it lost about 15 percent of its membership, finishing the year with 26,500 members, down from 30,000 at the end of 2001.
UHA's financial reserves, which have been below the state's minimum since early 2001, also showed improvement in 2002, rising to $960,000 by year-end from the previous year's $317,000.
Despite the improved performance, UHA reserves still have a way to go before it reaches the approximately $4 million state requirement. The company did not return calls for comment.
The state's two largest carriers, Hawaii Medical Service Association and Kaiser Permanente, recently reported 2002 losses of $35 million and $2.8 million, respectively.