Connect with us

Hi, what are you looking for?

Economy

HMO profits surge in first half to P4.53 billion

HEALTH MAINTENANCE organizations (HMOs) posted net profit growth of 203% in the first half to P4.53 billion due to cost-management measures as well as increased demand during the pandemic, the Insurance Commission (IC) said Monday.

“This may be explained by the 6.4% decrease in the industry’s total expenses against its increasing revenues,” Insurance Commissioner Dennis B. Funa said.

The industry total was compiled from the financial statements submitted by 22 HMOs, which seek to manage healthcare costs by referring clients to selected providers at agreed rates.

The industry reported revenue of P25.64 billion, up 6.7%.

The IC said more Filipinos signed up with HMOs as the coronavirus disease 2019 (COVID-19) outbreak amplified the need for health protection.

The insurance regulator said 10 companies reported profit declines of between 8.44% and 249.33%.

According to the IC, 84% of claims for medical benefits worth P231.36 million were paid out by HMOs during the public health emergency. It was citing a survey conducted between April 16 and May 8, which includes the weeks when the strictest lockdown rules were in force.

“The trends that we have seen from the unaudited reports submitted by the HMOs reveal that Filipinos are increasingly recognizing the value of availing of HMO products as part of health protection,” Mr. Funa said.

The industry’s assets grew 51.7% to P52.09 billion. Liabilities increased 50.2% to P40.85 billion.

“This is due to unearned membership fees, which constitute 60.74% of such liabilities. It can be presumed that this is due to the difficulties encountered by the HMO industry in collecting membership fees because of certain restrictions imposed by the national government in response to the COVID-19 pandemic,” Mr. Funa said. — Kathryn Kristina T. Jose

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Loxon Philippines, Inc. (LPI), one of the country’s leading specialty engineering contractors of fully integrated building management systems for the protection of life and...

Economy

MORE than half of students in the Philippines consider temporarily dropping out of school until the coronavirus pandemic ends mainly due to difficulties in...

Economy

The Public Works department has ramped up the completion of projects such as the Sta. Monica-Lawton Bridge also known as the Kalayaan Bridge. —...

Economy

THE BUREAU of the Treasury (BTr) raised its planned borrowings from the local market to P235 billion in July, as it seeks to offer...

Economy

By Jenina P. Ibañez, Reporter MANILA is the 78th most expensive city for expatriates to live in according to Mercer’s 2021 Cost of Living...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!