The Insurance Commission said the health maintenance organization (HMO) sector rebounded to register a net income in 2024 from a net loss a year ago.
“This is explained by the higher increase in the sector’s total revenue compared to its total expenses, which resulted in a net income of P979.8 million as of Q4 2024 vis-a -vis the reported net loss of P0.27 billion as of Q4 2023,” Insurance Commissioner Reynaldo Regalado said.
The sector’s revenue jumped 20.12 percent year-on-year to P79.37 billion as of the fourth quarter of 2024 from P66.08 billion in the same period in 2023.
The growth was led by an 18.43-percent increase in membership fees collected, comprising 95.30 percent of the total HMO revenue.
Meanwhile, the HMOs’ total expenses grew 11.44 percent on the back of a 10.08-percent increase in healthcare benefit and claims paid, rising from P55.46 billion as of fourth quarter of 2023 to P61.05 billion as of fourth quarter of 2024.
“We also noted from the submissions, that the HMO sector’s total assets, total invested assets, total equity, total capital stock and total liabilities upswung across the board during the quarter under review,” Regalado said.
The industry saw a 23.85-percent growth in its total assets as of the fourth quarter of 2024, year-on-year, rising from P60.66 billion to P75.13 billion.
The 21.38-percent increase in cash equivalents, a marked 273.08-percent rise in deposit to healthcare providers, and a 27.51 percent increase in membership fees receivable contributed to the growth.
The HMOs’ total invested assets, which comprised 23.77 percent of the sector’s total assets, increased 9.9 percent from P6.24 billion as of fourth quarter of 2023 to P17.86 billion as of fourth quarter of 2024.
The increase was attributed to the 21.38-percent rise in cash equivalents and 88.16 percent growth in government securities.
