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March 05, 2024

HMO industry reports 6-fold increase in losses to P2.15 billion amid rising claims

The health maintenance organization (HMO) sector experienced a significant net loss of P2.15 billion from January to September, representing a 500% increase compared to the same period last year.

This was driven by a surge in member benefits and claims, totaling P40.92 billion, which outpaced the industry’s 18% increase in revenue, reaching P49.31 billion.

Data from the Insurance Commission revealed that 11 out of 28 HMO firms, including Medicard Philippines Inc. and Maxicare Healthcare Corp., incurred net losses during this period.

Despite these losses, total assets managed by HMOs increased by 14% to P64.07 billion, and total invested assets expanded by 7% to P17.14 billion.