HMOs pay P32-B benefits, claims in Q3

Benefits and claims paid by health maintenance organizations (HMOs) rose in the third-quarter last year driving by increasing medical needs of the Filipino people, the Insurance Commission said.

In a statement on Thursday, Jan. 19, Insurance Commissioner Dennis B. Funa said health care benefits and claims increased 36 percent to P31.93 billion in July to September from P23.5 billon in the same period in 2021.

According to Funa, the financial data came from 24 HMOs that submitted their unaudited interim financial statements during the quarter.

At end-September, total assets also slightly went up year-on-year by 8.5 percent from P51.59 billion to P56.01 billion driven by growths in the cash, property, equipment and other assets accounting by 29.45 percent, 30.95 percent, and 53.47 percent, respectively.

Meanwhile, the industry’s total invested assets, on the other hand, contracted by 19.51 percent year-on-year from P16.07 billion from P19.97 billion.

Funa said the contraction was a result of year-on-year declines in the financial assets at fair value through profit or Loss (FVPL) account by six percent, or by P724 million, and in the cash equivalents account by 47.09 percent, or by P3.4 billion.

Meanwhile, HMO total revenues, total liabilities, and total capital stock grew 8.51 percent, 19.53 percent, and 44.59 percent, respectively.

“The increased delivery of Health Care Benefits and Claims by HMOs in third-quarter 2022 attests to the industry’s firm commitment in providing quality HMO services to its customers,” Funa said.

“This inspires confidence in the industry’s responsiveness to the medical needs of the Filipino people,” he added.

In addition, Funa said commission is not unmindful of the fact that HMOs are the second largest contributor to Covid-19-related payouts by our regulated entities since the start of the pandemic.

It will be recalled that the regulation and supervision of the HMO industry was transferred to the Insurance Commission from the Department of Health by virtue of Executive Order No. 192, Series of 2015, issued by the late President Benigno S. Aquino III.