THE health maintenance organization (HMO) industry saw its net income surge to P579.39 million in the first quarter from P6.78 million in the same period last year, data from the Insurance Commission (IC) showed.
The increase was attributed to the 26.15% increase in membership fee collections in the period, which accounted for 97.52% of the total revenues of the industry, according to data based on the unaudited financial statements submitted by 28 HMOs, up from the 24 submissions in the same period in 2024.
The growth in membership fees was driven by qualified government employees availing of the P7,000 medical allowance as part of their coverage, the IC said.
“This significant increase demonstrates the industry’s sustained recovery from the impact of the pandemic… These statistical growths are not just mere numbers. They are reassuring indicators that the HMO industry continues to be a strong and reliable industry that affords Filipinos with healthcare security, ultimately uplifting Filipino lives,” Insurance Commissioner Reynaldo A. Regalado said in a statement on Thursday.
The sector’s total assets grew by 22.67% to P87.48 billion in the first quarter from P71.31 billion in the same period last year amid higher net membership fee receivables, financial assets at amortized cost, and cash in banks. Cash on hand and net deposit to healthcare providers also grew by 119.68% and 127.55%, respectively.
Total invested assets, which made up 21% of total assets, rose by 11.03% year on year to P18.37 billion in the period.
This came as cash equivalents increased by 23.37% and as investments in subsidiaries, joint ventures, and associates surged by 86.92%.
The 356.82% jump in loans and receivables and the 16.55% increase in investments in government securities also helped drive the growth in HMOs’ combined investment assets.
The industry’s total equity also grew by 21.77% to P11.96 billion as retained earnings surged by 120.49%.
Meanwhile, the sector’s total expenses increased by 20.02% year on year to P22.41 billion.
“This is because of the 17.41% year-on-year rise in healthcare benefits and claims paid, which comprises 78.87% of the industry’s total expenses,” the IC said.
HMOs’ total liabilities grew by 22.82% to P75.52 billion.
“This upswing resulted mainly from a 78.73% increase in membership fee reserves amounting to P17.89 billion, which are essential for an HMO to meet its financial obligations and ensure the long-term sustainability of its operations,” the regulator said. — AMCS
