HMOs suffer P1.2 billion loss in 1st half

Philippine Tribune
Philippine Tribune

Louise Maureen Simeon – The Philippine Star

October 4, 2023 | 12:00am

Latest data from the Insurance Commission showed that the HMO sector incurred a net loss of P1.18 billion from January to June compared to an income of P1.18 billion in the same period last year.

STAR / File

MANILA, Philippines — The health maintenance organization (HMO) industry swung to a net loss of P1.2 billion in the first semester, as benefits and claims by its members soared.

Latest data from the Insurance Commission showed that the HMO sector incurred a net loss of P1.18 billion from January to June compared to an income of P1.18 billion in the same period last year.

This developed even as revenues improved by 15 percent to P32.14 billion as the industry increased its membership fees, which comprised 99 percent of the sector’s total revenues.

The first half’s net loss was attributed to the higher benefits and claims released by 29 HMO firms covered in the report, which jumped by 33 percent to P26.22 billion from P19.76 billion in 2022.

Eleven of the 29 HMO firms incurred net losses, led by Medicard Philippines Inc. with P723.51 million. But Medicard only ranked third in terms of benefits and claims during the period at P4.37 billion.

Maxicare Healthcare Corp. also recorded a P322.15-million loss in the bottomline after disbursing the largest number of benefits and claims at P10.82 billion.

Other HMO firms that suffered losses include Asalus Corp. (Intellicare), Asian Care Health Systems Inc., Carewell Health Systems Inc., Forticare Health Systems International Inc., Health Care and Development Corp. of the Philippines, Health Delivery System Inc., Optimum Medical and Health Care, Pacific Cross Health Care Inc. and Value Care Health System Inc.

Total assets handled by HMOs slightly went down by three percent to P61.76 billion while total invested assets dropped 26 percent to P18.68 billion.

Liabilities, on the other hand, inched up by four percent to P51.45 billion.

HMO equity slipped by 27 percent to P10.31 billion while the industry’s total capital stock increased 21 percent to P5.66 billion.

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