By Chino S. Leyco
The Insurance Commission reported yesterday that profit of the health maintenance organization (HMO) industry surged last year with Medicard Philippines, Inc. ranking as the largest provider in terms of net income.
In a statement, Insurance Commissioner Dennis B. Funa said that HMO industry posted a 63 percent increase in net profit in 2018 to P1.65 billion from P1.01 billion in the previous year.
According to Funa, Medicard Philippines registered the highest net income last year amounting to P706.31 million.
Reported assets of the HMO industry, on the other hand, reached P38.96 billion, up by 18 percent from P32.91 billion recorded during the same period in 2017.
Maxicare HealthCare Corp. took the top spot in terms of assets with P9.89 billion.
The total revenue of the industry, on the other hand, grew by 15 percent to P45.30 billion at end-2018 from P39.32 billion a year before.
In terms of revenue, Maxicare took the lead with a reported revenue of P14.18 billion.
According to Funa, 96 percent or P43.57 billion of the revenue of the HMO industry were generated from fees paid by its members in exchange for the assumption of the risk funding members’ health care services and related administrative costs.
The HMO industry likewise recorded an increase in the total membership fees paid in 2018.
“The total membership fees paid in 2018 is 14 percent higher than the P38.16 billion membership fees collected in 2017,” Funa said.
With a market share of 32 percent l, Maxicare reported the highest membership fees collected in the amount of P13.84 billion.
Funa clarified that these data are based on the submitted interim financial statements of 29 HMO companies.
The Insurance Commission is currently finalizing the Standard Chart of Account (SCA) for HMOs which will serve as the financial reporting framework for HMO to ensure transparency in their financial conditions and the consistent application of existing regulations.
According to Funa, the SCA will also provide a logical framework in the determination of the allocation and use of funds of HMOs in compliance with the rules and regulations promulgated by the IC.