Gen Zs seen aiding HMO recovery

MANILA, Philippines — The Generation Z, colloquially known as the zoomers, is expected to help the health maintenance organization (HMO) sector recover as they begin to enter the workforce with wellness and social protection on top of their priorities.

The latest Wellness Index Survey of HMO provider Philhealth Care Inc. (PhilCare) revealed that Gen Zs, or those born in the late 1990s to early 2000s, put holistic wellness on top of their work priority list.

PhilCare president and CEO Jaeger Tanco expressed confidence that the younger generation would be able to contribute to the sector’s recovery as they put a premium on health and wellness.

The survey showed that health benefits such as HMO and insurance topped Gen Zs’ work priorities. This is followed by ease of travel, job satisfaction, other monetary benefits and personal growth.

“Yes (it will be significant). We don’t have a projection right now but I’m quite sure that they would want it because of what happened due to the pandemic,” Tanco said.

“They are more conscious about their health that they’d want to go have themselves checked also.”

As of the first half of the year, the HMO industry incurred a net loss of P1.18 billion due to higher benefits and claims by 33 percent to P26.22 billion.

Total assets handled by HMOs slightly went down by three percent to P61.76 billion while total invested assets dropped by 26 percent to P18.68 billion. Liabilities, on the other hand, inched up by four percent to P51.45 billion.

“What’s happening right now is actually still the impact of the pandemic when a lot of the members and their dependents (are utilizing their HMOs),” Tanco said.

“Based on the actual demand, I think they will still continue to use their card in the next few years but by then it will stabilize,” he said.

Further, PhilCare wellness index lead researcher and University of the Philippines College of Mass Communication dean Fernando Paragas said Gen Zs have a fresh set of priorities and preferences as they enter the workforce.

“Gen Zs are not just looking for a job, they’re seeking a meaningful career that resonates with their personal and professional goals,” Paragas said.

“Their approach to work is holistic, valuing health, convenience and job satisfaction alongside financial compensation,” he said.

The PhilCare survey covered 62.5 percent female and 37.5 percent male. Of the sample, 65.5 percent are working while most of the respondents at 60.5 percent belong to middle-income households.

From January to June, PhilCare ranked fourth in the HMO sector in terms of assets at P4.18 billion. Its net income stood at P31.42 million as of end-June.