The health maintenance organizations (HMOs) industry recorded a net loss in 2023 amid a significant increase in released healthcare benefits.
In a statement yesterday, the Insurance Commission (IC) reported that the industry recorded a net loss of P4.27 billion, 197.85 percent higher than the P1.43 billion shortfall recorded in the previous year.
Healthcare benefits and claims released by HMOs last year amounted to P55.46 billion, posting a 26.23 percent increase from healthcare benefits released in 2022, which amounted only to P43.93 billion.
HMOs also reported increases in administrative and commission expenses by 19.72 percent and 10.27 percent, respectively.
Meanwhile, the HMO industry increased its total revenues in 2023 by 16.36 percent to P66.89 billion from P57.48 billion a year ago.
In a separate report, the IC reported that the net income of life and non-life insurance companies and mutual benefit associations (MBAs) amounted to P48.46 billion in 2023, or an increase of 3.8 percent from the net income in 2022.
The increase in net income is attributed to the 30.07 percent increase in the net income of non-life insurance companies, which registered a net income of P9.11 billion in 2023.
The net income of life insurance companies marginally decreased by 0.72 percent to P33.63 billion.
The total net surplus of MBAs, meanwhile, slightly decreased by 1.55 percent to P5.73 billion.
Total premium collection by the insurance industry in 2023 also increased by 2.36 percent to P389.61 billion, as all life and non-life insurance companies and MBAs increased their premium collection in 2023.
Life insurance companies increased their premium collection by 0.15 percent to P309.99 billion. Non-life insurance companies increased their total net premiums written by 12.9 percent to P64.24 billion.
MBAs increased their total contributions by 8.29 percent to P15.38 billion.
Benefit payments by life insurance companies and MBAs decreased by 3.8 percent and 25.41 percent, respectively.
On the other hand, benefit payments by non-life insurance companies increased by 18.85 percent.
