Michael Gold took the helm as chief executive officer of the state’s largest health insurer, Hawaii Medical Service Association, on Saturday.

Gold, 65, has been the company’s president since April and chief operating officer for the past 15 years as part of his nearly 38-year career at HMSA.

HMSA said Gold’s CEO compensation is being discussed with its board.

He replaces Bob Hiam, who retired after leading the company for 17 of his 42 years with HMSA. Hiam’s retirement and Gold’s promotion were first announced in April.

The changes come at a critical time for the health insurance industry, as it prepares to meet the provisions of the federal Affordable Care Act, including launching the state’s first health insurance exchange, an online marketplace where individuals and small businesses can buy health insurance at group rates.

"I’m honored to take on the new responsibilities and challenges this position will bring as HMSA continues its role as a leader in health care," Gold said in a news release. "With the state health exchange fast becoming a reality, uncompromising consumer focus will become a bigger priority than ever before."

Gold, a University of Hawaii alumnus, is credited with leading the company’s efforts this year to meet the provisions of the health reform law.

He also brings expertise in underwriting, marketing and corporate planning, among other skills, to his position, HMSA said Monday.

Hiam, who made $1.2 million in 2011, joined HMSA in 1970 after graduating from UH-Manoa.

"During his tenure as chief executive officer, Hiam guided HMSA through the state’s and the country’s worst economic crisis, protecting HMSA’s financial health while maintaining member benefits and delivering great value," the company said.

HMSA has more than 700,000 members.