BIGGER BENEFITS, CLAIMS PAYMENTS CUT HMO INDUSTRY 2019 PROFIT BY 23.76%

As more Filipinos have signed up with health maintenance organizations (HMOS) for healthcare services, the industry’s profit dropped by almost a fourth to P1.26 billion last year.

Citing 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, which account for 76.34 percent of the industry’s total expenses vis-à-vis the industry’s increasing revenues,” Funa said.

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 fees that accounted for 96.61 percent of total.”

About seven million Filipinos are currently covered by HMO plans.

Industry assets rose 10.58 percent to P43.08 billion, of which 46.38 percent were cash 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—up by 14.95 percent to P7.51 billion in 2019,” Funa said.

This, he said, could be attributed to an increase in the industry’s aggregate capital stock, which accounted for 38.08 percent of the industry’s total equity. Capital stock expanded by 4.49 percent to P2.86 billion as of 2019.

In April, the Association of Health Maintenance Organizations of the Philippines Inc. (AHMOPI) assured their clients of COVID-19 coverage, with almost round-theclock assistance also made available for customer concerns.

AHMOPI counts among its members over 1,700 institutional health care providers and 40,000 medical specialists nationwide.