Obamacare. Higher costs, less care.
From Pacific Business News
May 16, 2014, 6:30am HST
Kaiser Permanente Hawaii posts $5.8M Q1 loss after paying $8M in ACA fees
Pacific Business News
Kaiser Permanente Hawaii said costs related to the federal Affordable Care Act added $8 million to its expenses in the first quarter and contributed to a $5.8 million loss for the quarter.
The Honolulu Star-Advertiser reports Kaiser said it collected $296.1 million in premiums during the first three months of the year, and paid $302.8 million in benefit expenses, which resulted in a $6.7 million operating loss that was offset by investment gains of $900,000, for a net loss of $5.8 million.
The newspaper reports Hawaii’s largest health-maintenance organization, which did not have an estimate of how much in ACA fees it would have to pay this year, said that the ACA fees account for about 2 percent to 3 percent of insurance premium costs.
The newspaper reports a Kaiser spokeswoman said the Affordable Care Act fees pay for subsidies for low-income families and individuals to purchase health insurance on the Hawaii Health Connector, which helps achieve a major goal of the federal legislation, which was to increase access to health care.
Meanwhile, the Hawaii Medical Service Association attributed much of its $30.1 million loss for the first quarter to the $46.1 million in Affordable Care Act fees that the state’s largest health insurer paid during the quarter.