HMO income down by 28% to P5.14 billion

MANILA, Philippines — Health maintenance organizations (HMOs) reported a 28 percent drop in combined profit last year to P5.14 billion as they increased their benefit payouts to cover the medical needs of their clients.

According to the Insurance Commission (IC), HMOs raised their benefit issuances by more than 25 percent to P32.72 billion to provide for the health requirements of clients during the second year of the pandemic.

Expenses rose nearly seven percent to P48.14 billion, while assets went up by over four percent to P61.72 billion. On the contrary, investments made by HMOs slipped by three percent to P28.24 billion.

IC Commissioner Dennis Funa said HMOs reported an increase in their investments in subsidiaries, associates and joint ventures, as well as in properties. However, HMOs suffered a 12 percent drop in financial assets at fair value through profit or loss amounting to P2 billion.

On the other hand, industry equity, liabilities and revenues all registered growths in yet another proof that insurers were recovering business momentum they lost to the pandemic.

Equity went up by more than four percent to P14.3 billion as HMOs saw an increase in their total capital stock.

Funa said that liabilities increased by five percent to P47.72 billion amid widening dividend payables, deferred tax liabilities and pension liabilities.

Revenues gained by HMOs went up by nearly two percent to P53.38 billion, largely due to higher membership fees which rose to P51.59 billion.

The insurance industry as a whole issued P16.71 billion in payouts from the start of the pandemic to the end of 2021.

The bulk of the benefits were released by life insurers amounting to P9.05 billion, while HMOs came next at P6.45 billion, followed by mutual benefit associations and non-life providers at P833 million and P382 million, respectively.