MANILA, Philippines – The Insurance Commission (IC) is set to issue this month new guidelines which will govern the issuance of licenses to health maintenance organizations (HMOs) in the country.
“We have drafted the proposed guidelines in the issuance of certificates of authority to HMOs and we are targeting to finalize and circularize the same by the end of this month,” Insurance commissioner Emmanuel Dooc said yesterday.
The draft circular will lay out the documentary requirements to be submitted by new HMOs intending to operate in the country. These requirements include the company’s Articles of Incorporation or Cooperation, Certificate of Registration from the Securities and Exchange Commission or the Cooperative Development Authority, the list of officers and board of directors, waiver that verifies the existence of capital deposits of the company and pre-operational balance sheets, among others.
The circular will also provide the requirements needed by existing companies to renew their Clearances to Operate (as provided by the Department of Health or DOH) and Certificates of Authority (issued by the IC).
Such companies will be expected to submit a copy of its Clearance to Operate or Certificate of Authority, list of the current board of directors and financial reports, among others.
It will be recalled that Executive Order (EO) 192, which was signed last year, transferred the jurisdiction of HMOs from the DOH to the IC.
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Dooc assured that Clearances to Operate or Certificates of Authority valid until Dec. 31, 2016 or Dec. 31, 2017 will still be honored by the IC until expiration.
He added such licenses can be renewed on or before the date of expiration subject to the submission of documentary requirements and payment of corresponding renewal fee.
Companies which will fail to renew on or before such date will be given until the second quarter of the year following the expiration to renew their licenses subject to payment of penalties. In case of non-compliance, they will be treated as new applicants, the IC said.
The Certificates of Authority to be issued by the IC pursuant to the draft circular will be valid until Dec. 31, three years after its issuance, and can be renewed every three years thereafter.
Currently, there are 29 HMOs operating in the country. Of these, 15 are holders of Clearances to Operate from the DOH, while 14 secured Certificates of Authority from the IC.
The IC so far has issued one license in favor of a new HMO company since the effectivity of EO 192.
