Local health maintenance organizations (HMOs) saw their net income almost double to 1.56 billion pesos in the first quarter due to the drop in benefits and claims, the Insurance Commission said ( IC).
The combined net profit of HMOs rose 95.6% from 797.6 million pesos in the first quarter of 2020, said Insurance Commissioner Dennis B. Funa, citing the latest unaudited financial statements from industry participants.
He attributed the increase to lower reported spending by businesses, which fell 9.24% year-on-year, as health benefits and claims fell 15.6% to P 7.6 billion in the first. quarter compared to P 9 billion in the same period last year.
The industry’s total shares soared 94% to 15.14 billion pesos from 7.8 billion pesos a year ago, supported by higher retained earnings, which accounted for 77.9% of global equity of HMOs.
Amid reduced collections of membership and registrants, HMOs reported revenues of less than P12.79 billion in the first three months, down 2.9% from P13.17 billion the previous year .
Meanwhile, total liabilities rose 20.4 percent to 51.42 billion pesos from its total of 42.72 billion pesos a year earlier.
Combined industry assets reached 66.56 billion pesos in March, up 31.8 percent from 50.51 billion pesos in the first quarter of 2020.
Mr Funa said the growth was driven by an increase in cash and cash equivalents, which made up more than half of all assets.
HMOs have released 3.98 billion pesos in coronavirus-related payments so far, nearly half of all pandemic-related payments issued by the industry valued at 8.25 billion pesos. March 2020 to June of this year.
“HMOs hold a unique place in our country’s fight against the pandemic as a frontline and have become a strong and reliable partner in ensuring that our country’s health needs in these uncertain times are addressed,” said said the head of IC. – Beatrice M. Laforga