THE health maintenance organization (HMO) sector experienced a remarkable rise in net income to P579.39 million during the initial quarter, up from P6.78 million in the corresponding timeframe last year, according to information from the Insurance Commission (IC).<\/p>\n
This surge was linked to a 26.15% rise in membership fee collections during the period, which constituted 97.52% of the industry\u2019s total revenues, based on data from the unaudited financial reports submitted by 28 HMOs, up from the 24 submissions in the same duration in 2024.<\/p>\n
The escalation in membership fees was fueled by eligible government employees utilizing the P7,000 medical allowance included in their coverage, stated the IC.<\/p>\n
\u201cThis notable growth illustrates the industry\u2019s ongoing rebound from the effects of the pandemic\u2026 These statistical increases are not just simple figures. They serve as comforting indicators that the HMO industry remains a robust and dependable sector that provides Filipinos with healthcare assurance, ultimately enhancing Filipino lives,\u201d remarked Insurance Commissioner Reynaldo A. Regalado in a statement on Thursday.<\/p>\n
The sector\u2019s total assets climbed by 22.67% to P87.48 billion in the initial quarter from P71.31 billion in the same period last year, driven by a rise in net membership fee receivables, financial assets at amortized cost, and cash in banks. Cash on hand and net deposits to healthcare providers also saw increases of 119.68% and 127.55%, respectively.<\/p>\n
Total invested assets, which comprised 21% of total assets, appreciated by 11.03% year over year to P18.37 billion during the period.<\/p>\n
This uptick occurred as cash equivalents surged by 23.37% and as investments in subsidiaries, joint ventures, and associates skyrocketed by 86.92%.<\/p>\n
The 356.82% increase in loans and receivables alongside a 16.55% rise in investments in government securities also contributed to the expansion of HMOs’ collective investment assets.<\/p>\n
The total equity of the industry also grew by 21.77% to P11.96 billion, with retained earnings soaring by 120.49%.<\/p>\n
In contrast, the sector’s total expenditures rose by 20.02% year on year to P22.41 billion.<\/p>\n
\u201cThis is attributed to the 17.41% year-on-year increase in healthcare benefits and claims paid, which account for 78.87% of the industry’s overall expenses,\u201d the IC mentioned.<\/p>\n
HMOs\u2019 total liabilities expanded by 22.82% to P75.52 billion.<\/p>\n
\u201cThis growth primarily stemmed from a 78.73% increase in membership fee reserves totaling P17.89 billion, which are vital for an HMO to fulfill its financial duties and ensure the long-term viability of its operations,\u201d the regulator noted. \u2014 AMCS <\/b><\/p>\n