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Insurance Commission warns HMOs: Stop selling preneed-like products

business / Headlines
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Insurance Commission warns HMOs: Stop selling preneed-like products

By: - Reporter / @bendeveraINQ
/ 05:12 AM September 23, 2017

The Insurance Commission has given health maintenance organizations (HMOs) until March next year to ensure they don’t sell products and services beyond their territory, or else face penalties.

Insurance Commissioner Dennis B. Funa recently told reporters that the regulator planned to slap monetary fines against HMOs that would continue to sell unauthorized, preneed-like products after the transition period for HMO supervision ends in March.

The supervision of the HMO sector was transferred to the commission from the Department of Health (DOH) through Executive Order No. 192 issued by former President Benigno S. Aquino III in 2015.

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About four to five HMOs out of the current 28 industry players sell unauthorized products, Funa said.

According to Funa, some of these products have even been approved by the DOH.

Last Sept. 7, Funa issued Circular Letter No. 2017-45, which mandated all HMOs doing business in the country to submit by Oct. 15 a status report and action plan that would set their specific actions and strategies to amend existing HMO products in order to conform to IC rules.

Funa also ordered the companies to submit copies of the agreements and contracts covering all the HMO products they have been selling.

“Please be reminded that after the end of the transition period (March 31, 2018), no HMO product shall be sold unless approved by [the IC],” Funa said.

In April, the commission ordered HMOs to first secure the regulator’s approval for new products and services.

The commission also earlier issued rules under which new domestic and foreign HMO entrants must comply with a P100-million paid-up capitalization requirement, while keeping the P10-million minimum for existing players.

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TAGS: Dennis B. Funa, health maintenance organizations (HMOs), Insurance Commission
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