The Insurance Commission (IC) has reported that the health maintenance organization (HMO) industry in the Philippines experienced a substantial increase in net income, reaching ₱579.4 million in the first quarter of 2025, representing an increase of 84.4 times compared to ₱6.8 million in the same period last year.

This remarkable growth is attributed primarily to a significant surge in membership fee collections, which saw a 26.2-percent rise and accounted for 97.5 percent of the industry's total revenues.

The increase in membership fees is largely due to the ₱7,000 medical allowance provided to eligible government employees for HMO coverage.

The latest figures released by the IC, which regulates the HMO sector, are based on unaudited financial statements from 28 HMOs, an increase from 24 in the previous year.

In terms of total expenses, including income tax, there was a 20 percent rise, escalating from ₱18.7 million last year to ₱22.4 million in the first quarter of 2025. This increase was driven primarily by a 17.4-percent annual rise in healthcare benefits and claims, which constituted 78.9 percent of total expenses.

Insurance Commissioner Reynaldo A. Regalado mentioned that the substantial increase in net income is indicative of the industry's sustained recovery from the impact of the pandemic.

He highlighted that all major financial indicators for the industry saw improvement, with total assets growing by 22.7 percent, up ₱16.2 million to reach ₱87.48 million in Q1 2025 from ₱71.3 million last year.

This growth in total assets was largely supported by increases in net membership fee receivables, financial assets at amortized cost, and cash held in banks.

Notably, cash on hand and net deposits to healthcare providers increased significantly, showing a rise of 119.7 percent and 127.6 percent, respectively.

The total invested assets of the industry, which represent 21 percent of total assets, grew by 11 percent year-on-year from ₱16.6 million to ₱18.4 million, driven by a 23.4-percent rise in cash equivalents and an 86.9-percent increase in investments in subsidiaries, joint ventures, and associates.

Additionally, loan receivables increased sharply by 356.8 percent, alongside a 16.6-percent rise in investments in government securities.

In terms of liabilities, total liabilities rose by 22.8 percent annually, reaching ₱75.5 million, up from ₱61.5 million.

This increase was influenced by a 78.7-percent surge in membership fee reserves—essential funds that assist HMOs in meeting financial obligations and ensuring long-term sustainability, which amounted to ₱17.9 million.

The report also indicates that the industry's total equity grew by 21.8 percent, climbing from ₱9.8 million in the first quarter of 2024 to ₱12 million in the current year, primarily driven by a ₱1.1 million increase in retained earnings—an increase of 120.5 percent compared to the previous year.

Regalado emphasized that these statistical improvements reflect the HMO industry's ongoing capacity to provide healthcare security to Filipinos.