Philippines HMO sector soars in Q1 2025

The growth is primarily driven by the 26.15% increase in the collection of membership fees.

The Philippines' Health Maintenance Organisation (HMO) industry recorded a dramatic 8,441.97% increase in total net income in the first quarter of 2025 (Q1 2025), rising from $0.12m (₱6.78m) in Q1 2024 to $10.43m (₱579.39m), according to data released by the Insurance Commission.

The growth is primarily attributed to a 26.15% increase in the collection of membership fees, which accounted for 97.52% of the industry’s total revenues.

The surge in fees was supported by the government’s $126 (₱7,000) medical allowance programme, enabling qualified public sector employees to access HMO coverage.

The Insurance Commission’s data, based on unaudited financial statements from 28 HMOs—up from 24 in the same period last year—also shows a broad improvement across the industry’s financial indicators.

Total expenses rose by 20.02% year-on-year to $0.40b (₱22.41b), largely due to a 17.41% increase in healthcare benefits and claims, which made up 78.87% of the industry’s total expenses.

Total assets expanded by 22.67%, increasing from $1.28b (₱71.31b) in Q1 2024 to $1.57b (₱87.48b) in Q1 2025.

This growth was driven by higher net membership fee receivables (up $0.11b [₱6.05b]), financial assets at amortised cost (up $0.06b [₱3.12b]), and cash in banks (up $0.04b [₱2.08b]).

Total liabilities increased by 22.82%, reaching $1.36b (₱75.52b).

A major contributor was a 78.73% rise in membership fee reserves, amounting to $0.32b (₱17.89b), which are critical for maintaining financial obligations and long-term sustainability.

($1.00 = ₱55.81)