The Insurance Commission (IC) reported that the health maintenance organization (HMO) industry’s total net income surged by 84.4 times—or by over half a billion pesos—in the first quarter of 2025 compared to the same period last year, driven by a sharp increase in membership fee income.

The latest data from the IC, the HMO industry’s regulator, showed that the sector’s end-March net income jumped from ₱6.8 million to ₱579.4 million.

Insurance Commissioner Reynaldo A. Regalado attributed this massive increase to the industry’s “sustained recovery from the impact of the pandemic.”

Regalado said in a statement released on Thursday, May 15, that the sharp increase was mainly due to a 26.2-percent rise in membership fee collections, which accounted for 97.5 percent of the industry’s total revenues. The increase in membership fees was driven by the ₱7,000 medical allowance provided to eligible government employees for HMO coverage.

The IC data was based on unaudited financial statements from 28 HMOs, up from 24 in the same period last year.

Meanwhile, the industry’s total expenses, including income tax, rose by 20 percent—from ₱18.7 million last year to ₱22.4 million in the first quarter of the year—mainly due to a 17.4-percent annual increase in healthcare benefits and claims, which accounted for 78.9 percent of total expenses.

Regalado noted that the HMO industry’s total assets, invested assets, equity, and liabilities all increased during the quarter.

The industry’s total assets grew by 22.7 percent or ₱16.2 million, reaching ₱87.48 million in the first quarter of 2025, from ₱71.3 million last year.

This growth was mainly driven by higher net membership fee receivables (up ₱6 million), financial assets at amortized cost (up ₱3.1 million), and cash in banks (up ₱2.1 million).

Cash on hand and net deposits to healthcare providers also saw significant increases, rising by 119.7 percent and 127.6 percent, respectively.

The HMO industry’s total invested assets, which make up 21 percent of its total assets, grew by 11 percent year-on-year—from ₱16.6 million to ₱18.4 million. This increase was mainly driven by a 23.4-percent rise in cash equivalents and an 86.9-percent jump in investments in subsidiaries, joint ventures, and associates.

A sharp 356.8-percent increase in loan receivables and a 16.6-percent rise in investments in government securities also contributed to the growth.

Meanwhile, total liabilities increased by 22.8 percent annually to ₱75.5 million from ₱61.5 million in the first quarter of 2024.

This growth was largely driven by a 78.7-percent increase in membership fee reserves—funds that are crucial for HMOs to meet financial obligations and maintain long-term sustainability—which reached ₱17.9 million.

The industry’s total equity grew by 21.8 percent, rising from ₱9.8 million in the first quarter of 2024 to ₱12 million this year. This was mainly driven by a ₱1.1-million increase in retained earnings, a 120.5-percent jump compared to the same period last year.

“These statistical growths are not just mere numbers. They are reassuring indicators that the HMO industry continues to be a strong and reliable industry that affords Filipinos with healthcare security,” Regalado said.