The Philippines Insurance Commission published unaudited industry statistics showing Health Maintenance Organizations (HMOs) recorded total net income of PHP 579.39 million for the quarter ending 31 March 2025, up 8,441.97% from PHP 6.78 million a year earlier. The Commission attributed the increase mainly to higher membership fee collections. Membership fees rose 26.15% year on year and represented 97.52% of total industry revenues, with growth linked to the PHP 7,000 medical allowance for qualified government employees to avail of HMO coverage. Total expenses (including income tax) increased 20.02% to PHP 22.41 billion, driven by a 17.41% rise in healthcare benefits and claims paid, which accounted for 78.87% of total expenses. Total assets increased 22.67% to PHP 87.48 billion, supported by higher net membership fee receivables (up PHP 6.05 billion), financial assets at amortized cost (up PHP 3.12 billion), and cash in banks (up PHP 2.08 billion), while total invested assets rose 11.03% to PHP 18.37 billion. Total liabilities grew 22.82% to PHP 75.52 billion, mainly reflecting a 78.73% increase in membership fee reserves to PHP 17.89 billion, and total equity rose 21.77% to PHP 11.96 billion, primarily due to retained earnings increasing by PHP 1.10 billion.
Philippines Insurance Commission 2025-05-15
Philippines Insurance Commission reports 8,442% jump in HMO industry net income in Q1 2025
The Philippines Insurance Commission reported that Health Maintenance Organizations (HMOs) achieved a net income of PHP 579.39 million for Q1 2025, marking an 8,441.97% increase from the previous year, driven by a 26.15% rise in membership fees. Total industry expenses rose 20.02% to PHP 22.41 billion, with healthcare benefits and claims comprising 78.87% of expenses. Total assets and liabilities increased by 22.67% and 22.82%, respectively, with growth in membership fee reserves and retained earnings.