The Philippine Health Maintenance Organization (HMO) industry has achieved an extraordinary 8,441.97% growth in its total net Income for the first quarter of 2025 (Q1 2025), soaring from ₱6.78 million in Q1 2024 to an impressive ₱579.39 million. This significant surge signals a robust recovery and expansion within the sector, according to recent data released by the Insurance Commission.
Insurance Commissioner Reynaldo A. Regalado remarked, “This significant increase demonstrates the industry’s sustained recovery from the impact of the pandemic. Notably, this growth is attributable to the 26.15% increase in collection of Membership Fees, which accounted for 97.52% of the total revenues of the industry.”
The remarkable growth in Membership Fees was significantly stimulated by the granting of a ₱7,000.00 medical allowance for qualified government employees to avail of HMO coverage, a key driver in expanding access to healthcare benefits.
While the industry experienced substantial income growth, total expenses (including Income Tax) also saw an increase of 20.02%, from ₱18.67 billion in Q1 2024 to ₱22.41 billion in Q1 2025. This was primarily due to a 17.41% year-on-year rise in healthcare benefits and claims paid, which constitutes 78.87% of the industry’s Total Expenses.
Commissioner Regalado also highlighted other positive trends: “The submissions also reveal that the HMO industry’s total assets, total invested assets, total equity, and total liabilities increased during the quarter under review.”
The industry’s Total Assets expanded by 22.67%, or ₱16.17 billion, reaching ₱87.48 billion in Q1 2025 from ₱71.31 billion in Q1 2024. This expansion was mainly driven by increases in Net Membership Fee Receivables (₱6.05 billion), Financial Assets at Amortized Cost (₱3.12 billion), and Cash in Banks (₱2.08 billion). Additionally, Cash on Hand and Net Deposit to Healthcare Providers saw significant growth of 119.68% and 127.55%, respectively.
Total Invested Assets, comprising 21.00% of the industry’s Total Assets, posted an 11.03% growth year-on-year, from ₱16.55 billion to ₱18.37 billion. This was bolstered by a 23.37% surge in Cash Equivalents, an 86.92% growth in Investments in Subsidiaries, Joint Ventures, and Associates, a 356.82% rise in Loans Receivables, and a 16.55% increase in Investments in Government Securities.
Total Liabilities grew comparably by 22.82% year-on-year, from ₱61.49 billion in Q1 2024 to ₱75.52 billion in Q1 2025. This upswing primarily resulted from a 78.73% increase in Membership Fee Reserves, amounting to ₱17.89 billion, crucial for an HMO’s financial stability and long-term operational sustainability.
The industry’s Total Equity also saw a healthy increase of 21.77%, from ₱9.82 billion in Q1 2024 to ₱11.96 billion in Q1 2025, largely due to a 120.49% increase in Retained Earnings, amounting to ₱1.10 billion.
Commissioner Regalado concluded, “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.”
The data analyzed was obtained from unaudited financial statements submitted by 28 HMOs for Q1 2025, compared with 24 submissions in Q1 2024.
