The Philippine health maintenance organization (HMO) industry saw its bottom line surge last year as the double-digit climb in membership fees outpaced rising medical payouts, signaling robust recovery for the sector.

According to data released by the Insurance Commission (IC) on Wednesday, Feb. 18, the industry’s collective net income jumped fourfold to ₱3.99 billion last year from ₱996.52 million in 2024.

IC said the sharp profit growth was driven by stabilizing environment for healthcare providers who have wrestled with fluctuating medical inflation and utilization rates in the post-pandemic era.

Total revenues for the HMO sector crossed the hundred-billion mark, rising 24.84 percent to ₱101.56 billion from ₱81.36 billion a year earlier.

According to the IC, the expansion was fueled almost entirely by a 26.82 percent increase in total membership fees, which reached ₱98.46 billion. The growth suggests that both corporate and individual clients are prioritizing healthcare coverage despite broader economic pressures, providing HMOs with a larger capital pool to manage rising operational costs.

As revenues scaled, so did the industry’s delivery of medical services. HMOs disbursed ₱74.64 billion in total healthcare benefits and claims on behalf of their members in 2025. This represents a 19.35 percent increase, or an additional ₱12.10 billion in payouts, compared to the previous year.

These claims accounted for 76.50 percent of the industry’s total expenses for the year, reflecting the high-cost nature of medical underwriting.

Insurance Commissioner Reynaldo A. Regalado said last year’s performance was a milestone for national healthcare goals, noting that the statistics showed sustained improvement in how the industry serves its constituents.

He said the progress serves as an encouraging impetus to further strengthen healthcare protection for Filipinos while demonstrating a commitment to augmenting the provision of quality medical care.

The industry’s balance sheet also showed broad strengthening. Total assets held by HMOs reached ₱88.58 billion by the end of 2025, a 17.34 percent annual increase.

Within that portfolio, total invested assets grew by 23.11 percent to ₱22.60 billion, providing companies with more significant cushions for future liabilities.

Total equity rose 21.82 percent to ₱13.91 billion, while total liabilities increased at a slightly slower pace of 16.55 percent to ₱74.67 billion. This widening equity gap suggests a healthier capital position for the country’s leading healthcare providers as they head into the new fiscal year.