Profit of the health maintenance organization (HMO) industry fell by almost one-fourth to P1.26 billion in 2019 as more Filipinos signed up for coverage.
Citing the latest unaudited interim financial reports submitted by 29 HMOs to the Insurance Commission (IC), Insurance Commissioner Dennis B. Funa said industry-wide net income declined 23.76 percent in 2019 from P1.65 billion in 2018.
“This can be attributed to the increase in healthcare benefits and claims paid by the industry,” Funa said. He added that these consisted of 76.34 percent of the industry’s total expenses against revenue.
Last year’s HMO industry revenues grew 13.83 percent to P51.56 billion from 2018’s P45.3 billion, which Funa attributed to “growing total membership.”
At leat seven million Filipinos are currently enrolled in HMO plans.
Industry assets rose 10.58 percent to P43.08 billion, of which 46.38 percent were cash and cash equivalents, Funa said.
Liabilities also increased 9.7 percent to P35.57 billion, of which 39.26 percent came from unearned membership fees.
“Notwithstanding the increase in liabilities, an upward trend in total equity was observed,” Funa said.
“The upward trend in the HMO industry’s equity could be attributed to an increase in the industry’s aggregate capital stock,” Funa added.
“Remarkably, not only did it contribute to the industry’s equity, the industry’s capital stock actually expanded by 4.49 percent to P2.86 billion as of 2019,” Funa said.
In April, the Association of Health Maintenance Organizations of the Philippines Inc. (AHMOPI) assured their clients of COVID-19 coverage, with almost round-the-clock assistance.
AHMOPI counts among its members over 1,700 institutional health care providers as well as 40,000 accredited medical specialists nationwide.