The total net income of health maintenance organizations (HMOs) in 2020 jumped by 463.75 percent, amid a double-digit decline in expenses as clients opted to defer non-coronavirus disease 2019 (COVID-19)-related check-ups and procedures, the Insurance Commission said yesterday.
The IC said in a statement the HMO industry’s total net income surged to P7.12 billion from P1.26 billion in 2019 based on the unaudited interim financial statements submitted by 25 of 29 HMOs.
Dennis Funa, insurance commissioner, said the 2020 performance may be explained by the 10.2 percent decrease in the industry’s total expenses against its increasing revenues.
“The figures … reflect the temporary changes in the behavior of the general public. People are deferring or postponing, if they can, medical procedures. This is just temporary. When the opportunity affords it, people will have their medical check-ups and procedures,” Funa said.
“…HMOs have shouldered a significant amount of the COVID-19 private medical expenses,” he added.
Total revenues earned by the HMO industry amounted to P52.29 billion in 2020 compared to the previous year’s P51.56 billion, which translates to an increase of 1.41 percent.
“Filipinos are increasingly recognizing the value of availing HMO products as part of health protection,” Funa said, adding “the HMO industry’s total revenues is mainly driven by its continuously growing total membership, or enrollees’ fees, which comprise 97.12 percent of the industry’s total revenues.
Total assets of the industry increased by 37.53 percent to P59.25 billion in 2020 from P43.08 billion in 2019.
The industry’s total liabilities, on the other hand, rose by 27.98 percent to P45.53 billion from the P35.57 billion recorded the previous year.
About 33.13 percent of the total liabilities were under unearned membership fees, which refer to fees paid in advance to the HMO industry for services not yet provided, Funa said.
The industry’s total equity also jumped 82.74 percent to P13.72 billion last year from P7.51 billion in 2019 mainly attributed to the 59.47 percent increase in retained earnings, which comprises 77.05 percent of the total equity.
