The Insurance Commission (IC) reported on Friday, Aug. 16, that healthcare benefits paid out by health maintenance organizations (HMOs) rose by 15.7 percent from January to June this year while their net income also increased.

In a statement, the IC said HMOs paid P30.33 billion in benefits in the first half, up from P26.23 billion in the same period a year earlier.

This growth in healthcare benefits resulted in a 15.62 percent increase in the HMO’s total expenses, which jumped from P32.97 billion to P38.12 billion.

The industry’s total assets increased substantially by 12.16 percent, or P7.51 billion, to P69.27 billion from P61.76 billion in the same period last year.

Total invested assets also increased year-on-year by 6.45 percent to P21.31 billion.

The increase in the industry’s total assets is attributable to increases in cash equivalents, up by 56.98 percent. This brings the total invested assets percentage share to 29.15 percent of the HMO industry’s total assets.

Meanwhile, the HMO’s total equity and total liabilities also grew during the first half at 6.28 percent and 13.33 percent, respectively.

The growth in total liabilities from P51.46 billion to P58.32 billion is attributable to increases in membership fee reserves and claims reserves by 24.23 percent and 26.49 percent, respectively.

The HMO’s total net income likewise increased, even with the big benefit payouts, to P636.6 million from a total net loss of P1.19 billion registered at the end of the same period last year. This is attributed to the 18.97 percent increase in membership fees, from P30.73 billion to P36.57 billion.

Earlier, the IC issued a draft circular inviting public consultation on revising the rules and regulations governing the minimum capitalization and financial capacity requirements for HMOs.

Under this proposal, the capital base for HMOs will be increased to P50 million for existing domestic HMOs by year-end and to P100 million by the end of 2025 – matching the requirement for new HMOs.