DESPITE a significant increase in benefit payouts, the Insurance Commission (IC) reported that health maintenance organizations (HMOs) rebounded, fueled by the industry's higher total revenues.

Data showed that HMOs paid out P30.33 billion in health care benefits to members in the first half of 2024, a 15.65-percent increase from the same period last year.

The HMO industry was said to have bounced back to profitability, despite the increase in payouts, posting a net income of P636.6 million in the first half of this year, compared to a net loss of P1.19 billion in the same period last year.

"The return to profitability of the HMO industry amid the big increase in benefit payouts is brought about by higher total revenues by the industry, which amounted to P38.75 billion as of the first half," the IC said.

Total revenues rose to 21.93 percent to P38.75 billion in the first half of this year from P31.78 billion in the same period last year.

The bulk of this total revenues consists of total membership fees collected by HMOs, which amounted to P36.56 billion, up 18.97 percent from last year's P30.73 billion.

In the first half of 2024, the HMO industry saw a significant increase in its total assets, rising by 12.16 percent to P69.26 billion from P61.76 billion last year.

Total Invested Assets also grew by 6.45 percent to P21.31 billion, driven largely by a 56.98-percent rise in cash equivalents, hence total invested assets now make up 29.15 percent of the industry's total assets.

Meanwhile, total liabilities increased by 13.33 percent to P58.32 billion, which according to IC was mainly due to substantial rises in membership fee reserves (24.23 percent) and claims reserves (26.49 percent).

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