MANILA, Philippines — The health maintenance organization (HMO) industry suffered a higher net loss as member benefits and claims soared from January to September, the Insurance Commission (IC) said.
Latest data from the IC showed that the HMO sector incurred a net loss of P2.15 billion from January to September, more than 500 percent higher than the P341.3 million it lost in the same period last year.
This developed even as revenue improved by 18 percent to P49.31 billion as the industry increased its membership fees, which comprised 97 percent of the sector’s total revenue.
The nine-month net loss was attributed to the higher benefits and claims released by 28 HMO firms covered in the report, which jumped by 28 percent to P40.92 billion from P31.93 billion in 2022.
The IC earlier said the financial condition of several HMOs was heavily impacted by the 2022 loss and the continuing increase in health care costs this year.
Eleven of the 28 HMO firms incurred net losses, led by Medicard Philippines Inc. with P1.1 billion. But Medicard only ranked third in terms of benefits and claims during the period at P6.53 billion.
Maxicare Healthcare Corp. also recorded a P690.7-million loss in bottomline after disbursing the largest number of benefits and claims at P16.59 billion.
Other HMO firms that suffered losses include Asalus Corp. (Intellicare), Asian Care Health Systems Inc., Carewell Health Systems Inc., Forticare Health Systems International Inc., Health Care and Development Corp. of the Philippines, Health Delivery System Inc., Optimum Medical and Health Care, Pacific Cross Health Care Inc., and Value Care Health System Inc.
Nonetheless, total assets handled by HMOs increased by 14 percent to P64.07 billion while total invested assets expanded by seven percent to P17.14 billion.
Liabilities, however, also rose by 21 percent to P53.66 billion.
HMO equity slipped by 13 percent to P10.41 billion while the industry’s total capital stock jumped by nearly 50 percent to P6.85 billion.