THE INSURANCE Commission (IC) is open to handing over the supervision and regulation of health maintenance organizations (HMO) to another government agency, its top official said.
“Until we can find the right place to put them, we’ll do everything we can for them. I don’t see other options at the present… If there would be better people or a better organization to handle it, I’ll be more than happy to transition,” Insurance Commissioner Reynaldo A. Regalado told reporters late on Monday.
This, as Mr. Regalado said he is in talks with Congressman Anthony T. Golez, Jr. regarding a proposal to transfer the oversight of HMOs to another agency under the Department of Finance. This would also need to be coordinated with other concerned agencies, he added.
“I think we have to get the wisdom of the legislators. It has to be covered by law, so the mandate is clear,” Mr. Regalado said.
With HMOs being covered by anti-money laundering rules, the sector needs to be regulated by a financial regulator, he added.
Meanwhile, the IC will likely delay its proposal to hike HMOs’ minimum capital requirements, Mr. Regalado said.
The IC in July issued a draft circular that proposed to raise the minimum paid-up capital of HMOs to P50 million by end-2024 from the current P10 million. Meanwhile, new HMOs must put up at least P100 million in capital.
By end-2025, all HMOs should have at least P100 million in paid-up capital under the proposal. This would be increased to P200 million by end-2028, to P350 million by end-2031 and to P500 million by end-2034.
“We have not spoken with the hospitals and the doctors. We may have to be doing that because it’s something that we have not been having much of a dialogue. So, we’ll have to coordinate with the Department of Health on how we’re supposed to go about it because now we will have to check on the proper rates that we’re supposed to be putting up,” Mr. Regalado said.
“It’s a moving target. We are reviewing. To be honest about it, we are reviewing because this has been given to us through an executive order… We’re in continuing discussion with Congress on how we’re supposed to go about it because once we have a clearer mandate, I think that would be good,” he added.
The HMO industry booked a combined net income of P636.6 million at end-June versus the P1.19-billion net loss booked in the same period last year, according to IC data based on the unaudited financial statements of 25 companies.
Only six out of the 25 licensed HMO companies recorded net losses in the period, according to the report, with all firms meeting the current P10-million capital requirement. — AMCS