This paper provided basic information on the country’s Health Maintenance Organization (HMO) industry as well as its response to the COVID-19 pandemic. The current tax treatment and contribution of the sector to the revenue effort of the government are likewise discussed in the study to serve as valuable inputs to fiscal policymakers in the deliberation of Package 4 of the Comprehensive Tax Reform Program.
The growing health consciousness of most Filipinos has led to the positive growth of the HMO industry throughout the years. The COVID-19 pandemic highlighted the value of availing of HMO as part of the health protection of every Filipino.
In recognition of the important role HMOs play in providing Filipinos with a wide range of health care benefits, starting from preventive care to physician care and hospitalization, Package 4 pushes for the shift of the tax treatment of HMO plans from the current 12% value-added tax to 2% premium tax to place them on equal footing with life insurance companies as both industries mainly engaged in human lives. The move would make HMO plans more affordable, thereby encouraging more Filipinos to invest in HMO plans to have better access to quality health care.