Hawai'i's No. 2 insurer suffers net loss of $456,000 | The Honolulu Advertiser

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Hawai'i's No. 2 insurer suffers net loss of $456,000 | The Honolulu Advertiser | Hawaii's Newspaper

Posted on: Friday, March 3, 2006

Hawai'i's No. 2 insurer suffers net loss of $456,000

Advertiser Staff

Kaiser Foundation Health Plan Inc.'s Hawai'i region, the state's No. 2 insurer, swung to a net loss of $456,000 after reporting net income in 2004. Kaiser ended the year with 226,000 members.

KAISER

Revenue: $830 million vs. 2004's $786.4 million

Operating Expenses: $840 million vs. 2004's $781 million

Operating Income: -$10.2 million vs. 2004's $5.4 million

Investment Income: $9.7 million vs. 2004's $5.9 million

Net Loss/Income: -$456,000 vs. 2004's $11.3 million

REASONS

Kaiser's 278 hospital beds were full for most of the year, forcing it to send members to other facilities for care.

The loss would have been larger if not for an increase in investment income.

Kaiser's fourth-quarter net loss was $5.3 million compared with net income of $2.2 million a year earlier.

WHAT THEY ARE SAYING

"Managing our costs for hospitalization, both inside and outside of Kaiser Permanente, was a tremendous challenge."

Jan Head
Kaiser Foundation Health Plan Hawaii President

WHAT'S NEXT

Kaiser will continue work on a new five-story tower at its Moanalua Medical Center.

The insurer's revenues will increase this year because of a 3 percent increase in premiums for business and government employers. The rate hike went into effect on Jan. 1.

Kaiser is continuing to work on programs to moderate operating cost increases.

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