Goldmed not a licensed HMO, says IC chief | Inquirer Business
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Goldmed not a licensed HMO, says IC chief

By: - Reporter / @bendeveraINQ
/ 12:20 AM September 09, 2016

The Insurance Commission has warned the public against availing themselves of health maintenance services being offered by MCN Global Holding Corp.

In an advisory, Insurance Commissioner Emmanuel F. Dooc said MCN Global Holding, also known as Goldmed, “has not been issued a certificate of authority or clearance to operate by the lnsurance Commission as a health maintenance organization (HMO).”

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Hence Dooc advised the public “not to transact HMO business with Goldmed, its officers, employees and agents.”

“For any information, please report to the lnsurance Commission any unauthorized sale of HMO products by the said corporation,” Dooc added.

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The supervision of the HMO sector was transferred to the Insurance Commission from the Department of Health (DOH) through Executive Order No. 192 issued by former President Aquino last year.

In July, the Insurance Commission issued rules covering HMOs, under which new domestic and foreign entrants must comply with a P100-million paid-up capitalization requirement, while keeping the P10-million minimum for existing players.

Circular Letter 2016-41 allowed existing HMO companies to continue compliance with the lower capitalization requirement earlier set by the DOH.

As for the new rule for incoming investors, Dooc explained that the higher capitalization cap would ensure that “every HMO company could service its obligations.”

Deputy Commissioner Dennis B. Funa noted that the HMO industry had been plagued by fly-by-night firms, especially in the provinces. This was the reason why HMO companies moved to have their financial health overseen and regulated by the Insurance Commission, according to Funa.

At least 28 HMOs presently operate in the country.

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TAGS: Business, economy, Goldmed, health maintenance organization, hmo, IC, Insurance Commission, News
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