HMO industry triples earnings in Q3

MANILA, Philippines — The health maintenance organization (HMO) industry expanded by threefold in the third quarter, with earnings surging past P2 billion, the Insurance Commission (IC) reported.

In a statement , the insurance regulator reported that the HMO sector posted a net income of P2.44 billion from July to September, an increase from P800.9 billion in the same period last year.

IC Commissioner Reynaldo Regalado said that the sector’s improved profitability highlights its continued reliability in delivering essential health care services and meeting the growing needs of Filipinos nationwide.

“The HMO industry delivered a commendable performance in the third quarter, as the majority of the companies demonstrated stronger profitability and wider market reach. This underscores the industry’s continued reliability in supporting Filipinos’ health care needs,” he said.

IC reported that total revenues rose by 22.6 percent, climbing to P73.12 billion from P59.65 billion in the same period last year. The bulk of the revenue came from membership fees at P71.13 billion, which accounted for nearly 98 percent of the sector’s total revenue.

On the other hand, the HMO industry’s total expenses increased to P70.63 billion from P58.85 billion, of which P54.96 billion was allocated to health care benefits and claims.

“Collectively, these developments reflect the sustained growth and strengthened financial position of the HMO industry, providing a promising foundation for further innovation, more effective regulation and improved delivery of accessible and reliable healthcare,” Regalado said.

The insurance regulator also reported that the industry’s assets surged to P96.81 billion, representing a 27.6-percent increase from P75.87 billion in the same period last year. Largely driven by increases in claims and other reserves, the industry’s total liabilities rose to P84.1 billion in the third quarter from P64.20 billion in the same period of last year.

The IC said the sharp decline in the industry’s capital stock account to P6.86 billion from P8.93 billion was due to the reorganization of equity accounts to properly represent the contingency surplus, in line with the insurance regulator’s circular.