Kaiser sees profit
jump four-foldThe state's second-largest
health insurer attributes the
increase to a gain in members
The state's second-largest insurer, Kaiser Permanente Hawaii, reported a net income of $3.1 million for the first quarter -- more than four times the $612,000 it reported a year ago.
Kaiser said revenue jumped due to a gain in members.
"Our membership has increased by about 5,700 since the first quarter of last year, which led to increased revenue," said Arnold Matsunobu, vice president of finance for Kaiser.
Matsunobu also attributed the increased profit to better management of resources and fewer referrals for outside services.
Kaiser reported first-quarter revenues of almost $172 million for the period while its operating expenses for the quarter were close to $166 million. Those figures compare to revenue of $150 million and operating expenses of $145 million for the same period last year.
Still, the increase in membership will mean greater expenses for the organization since more people will need medical care, Matsunobu said.
Kaiser has 233,000 members statewide and is the state's largest health maintenance organization. It operates 16 outpatient clinics on Oahu, Maui and the Big Island and contracts with Kauai Medical Group to provide care for its Kauai members. The company has 350 physicians and 4,000 employees.
Last year Kaiser lost more than $2.8 million on its health plan operations.
In its year-end filing with the state Insurance Division, Kaiser reported it collected $407.7 million in premiums from members last year, a 5 percent increase from a year earlier. In addition, Kaiser collected $171.7 million for patients who are covered under the federal Medicare and Medicaid programs.
Kaiser has already filed a request with the state Insurance Division to raise health plan rates by 9 percent for its most popular medical plan.