The Philippine health maintenance organisation (HMO) sector reported a substantial increase in net income for the first quarter of 2025 (Q1 2025), according to a release from the Insurance Commission (IC).
The industry’s total net income rose sharply to PHP579.39 million, up from PHP6.78 million in the same quarter of the previous year – a growth of more than 8,400%.
This growth has been largely attributed to a 26.15% rise in membership fee collections, which comprised nearly 98% of the industry’s total revenue.
Insurance Commissioner Reynaldo Regalado linked the increase in collections to a government initiative that provided public employees with a PHP7,000 medical allowance, encouraging them to opt into HMO coverage.
At the same time, total industry expenses – including taxes – grew by 20.02% year-on-year, reaching PHP22.41 billion. Healthcare benefits and claims accounted for the majority of this, increasing by 17.41% from the previous year and comprising nearly 79% of all expenditures.
The Insurance Commission’s data, based on unaudited financials from 28 HMOs, also highlighted a rise in operational and capital figures compared to Q1 2024, when 24 organisations submitted data.
Total assets in the HMO sector increased by 22.67% year-over-year, reaching PHP87.48 billion. This was driven by increases in receivables from membership fees, financial assets held to maturity, and bank cash holdings. Cash on hand and healthcare provider deposits also recorded triple-digit percentage increases.
Invested assets, representing roughly one-fifth of total industry assets, grew by over 11% to PHP18.37 billion. Contributing factors included a more than 350% increase in loans receivables, and growth in both government securities and investments in related entities such as subsidiaries and joint ventures.
The industry’s total liabilities rose 22.82% to PHP75.52 billion, led by a 78.73% increase in membership fee reserves, which reached PHP17.89 billion. The commission noted that such reserves are critical to ensuring financial viability and fulfilling future benefit obligations.
Total equity expanded by 21.77%, ending the quarter at PHP11.96 billion. This included a notable rise in retained earnings, which more than doubled year-over-year.
Regalado said these financial figures suggest continuing sector resilience and an improving operational landscape.
“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, ultimately uplifting Filipino lives,” he said.
Against this backdrop, the IC has issued guidance encouraging insurers and HMOs to develop policies tailored to gender-specific health risks.
Citing rising healthcare costs, the regulator released Advisory No. RS-2025-009, which advocates for expanded offerings that include benefits for maternal health, reproductive services, and critical illnesses affecting men and women differently.
Regalado said the move is intended to foster inclusivity and financial protection, particularly for underrepresented health needs.
“The commission supports initiatives that promote inclusivity, empowerment, and financial resilience through the availability of specialised insurance and HMO products that address women’s health, financial security, and overall well-being,” he said.
The advisory was issued as healthcare costs in the Philippines continue to rise. A study by WTW projects an 18.3% increase in medical expenses for 2025, one of the steepest anticipated increases in the Asia-Pacific region.
Contributing factors include higher service utilisation, rising provider fees, and increasing rates of chronic conditions.
