HMOs snap 2-year losing streak, post profit in H1

MANILA, Philippines —  The health maintenance organization (HMO) industry reverted to profitability in the first semester, breaking two years of losses as membership fees increased.

Latest data from the Insurance Commission showed that the HMO sector’s net income reached P636.6 million from January to June, against a net loss of P1.19 billion in the same period last year.

At the end of June 2022, the HMO sector recorded a profit.

For the first half, revenues jumped by 22 percent to P38.75 billion as the industry increased its membership fees to reach P36.57 billion, up by almost 20 percent.

The figure accounted for 94 percent of the sector’s total revenues.

The higher membership fees offset the higher benefits and claims released by 25 HMO firms covered in the report, which rose by 16 percent to P30.33 billion from P26.23 billion in 2023.

Maxicare HealthCare Corp. led the firms in net income with earnings at P150.24 million. It also disbursed the biggest benefits and claims worth P11.36 billion.

Value Care Health Systems Inc. followed with a profit of P146.12 million and Insular Health Care Inc. with P143.18 million.

Only six of the 25 HMO firms, led by Medicard Philippines Inc. with P183.98 million, incurred net losses. However, Medicard only ranked third in benefits and claims during the period at P4.59 billion.

Other HMO firms that suffered losses include Getwell Health Systems Inc., Pacific Cross Health Care Inc., Health Plan Philippines Inc., Optimum Medical and Health Care and Forticare Health Systems International Inc.

Further, total assets handled by HMOs went up 12 percent to P69.27 billion while total invested assets increased by six percent to P21.31 billion.

Liabilities, however, also increased by 13 percent to P58.32 billion.