HMO losses soar 6-fold to P2.15 B

The health maintenance organization (HMO) industry suffered a higher net loss as member benefits and claims soared from January to September, the Insurance Commission (IC) said.

Latest data from the IC showed that the HMO sector incurred a net loss of P2.15 billion from January to September, more than 500 percent higher than the P341.3 million it lost in the same period last year.

This developed even as revenue improved by 18 percent to P49.31 billion as the industry increased its membership fees, which comprised 97 percent of the sector’s total revenue.

The nine-month net loss was attributed to the higher benefits and claims released by 28 HMO firms covered in the report, which jumped by 28 percent to P40.92 billion from P31.93 billion in 2022.

The IC earlier said the financial condition of several HMOs was heavily impacted by the 2022 loss and the continuing increase in health care costs this year.

Eleven of the 28 HMO firms incurred net losses, led by Medicard Philippines Inc. with P1.1 billion. But Medicard only ranked third in terms of benefits and claims during the period at P6.53 billion.