MEDICARD Philippines, Inc. expects the health maintenance organization (HMO) sector to post steady growth this year amid continued demand for healthcare services despite challenging economic conditions.
“For us, I expect claims to continue to be well managed… Going into the future years, I retain the view that the healthcare market has significant growth opportunities,” MediCard Chief Executive Officer Julian Mengual told reporters on the sidelines of an event on Wednesday.
As of end-June, the HMO industry’s combined net income declined by 42.29% year on year to P2.094 billion, latest Insurance Commission (IC) data showed.
Mr. Mengual said the drop may have been driven by lower cases as Filipinos become more conscious about their personal health, as well as economic pressures due to spillovers from the prolonged Middle East conflict.
“I think that because people are taking their healthcare more seriously, I think it’s leading to potentially less cases than before. So, I think you’ve got an element of what I call frequency, which is the number of cases. I think it’s strong. I think people are kind of taking their healthcare less seriously,” he said.
But high prices, including medical costs, are squeezing Filipinos’ budgets despite high demand for healthcare services, Mr. Mengual added.
“The industry is also getting hit by a number of economic pressures… My view would be that it’s all a price issue in the room. If I take the macro view, GDP (gross domestic product) growth in the Philippines is less than 3% at the moment. Typically, it’s 6%.”
Philippine GDP growth averaged 2.6% in the first half, below the government’s 3.5-4.5% target for the year.
Meanwhile, headline inflation averaged 5.4% in the first nine months of the year, well above the central bank’s 3% goal.
MediCard has over one million members, more than 96,287 accredited doctors in over 1,579 hospitals and clinics nationwide, as well as 18 free-standing clinics and more than 2,400 corporate accounts.
Mr. Mengual said they will continue to expand their network of partner institutions and healthcare practitioners.
“In terms of the network, we will continue to add to it. I don’t know the exact number, but over the year, we’ve probably increased the size of the network by about 2-3%, which is significant,” he said.
MediCard also expects benefit payouts per member to grow by single digits this year, the official said.
The company on Wednesday launched its revamped MedGo mobile app to help address usual pain points in the country’s overall digital healthcare experience, which include downtimes, login access and performance, and healthcare transactions such as securing letters of authorization (LOAs), finding accredited providers, and monitoring reimbursements.
Through the new MedGo app, members can access their digital ID, view benefits and coverage, request LOAs, book appointments, access available online consultation services, file and track reimbursements, and search for MediCard clinics, doctors, hospitals and other accredited providers.
Face Scan is also available for select accounts as a way to access health insights through the app.
MediCard will continue to add features to the MedGo app, including supplementary artificial intelligence tools for select solutions as well as access to home healthcare. Mr. Mengual said home healthcare services will be rolled out starting the first quarter of 2027.
MediCard booked a net income of P100.46 million as of end-June, down from P250.45 million last year, IC data showed. — Aaron Michael C. Sy