Philippines’ Insurance Council transitions HMO to receivership

The HMO had been under conservatorship since 18 January, due to its inability to meet the IC's requirements.

The Insurance Council (IC) of the Philippines has placed the health maintenance organisation, Caritas Health Shield (CHSI), under receivership.

Previously, CHSI was in a conservatorship as per the latest order dated 25 July.

The IC's findings, outlined in a letter on the same date, deemed CHSI's five-year rehabilitation plan unworkable. 

The council then placed the company under receivership and mandated CHSI to submit an improved and viable rehabilitation proposal within a 90-day period.

The IC's primary concern, as emphasised in their letter to CHSI, is the safeguarding of the company's members' interests. 

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A Notice of Stay Order was simultaneously issued, halting all claims against CHSI from 1 August, unless sanctioned by the IC. 

Legal actions pertaining to claims against CHSI were also suspended, and the company was restricted from selling, transferring, or encumbering its assets without the receiver's recommendation and IC approval.

CHSI had been under conservatorship since 18 January, due to its inability to meet the IC's requirements, especially concerning solvency. A net worth deficiency of $120m as of 2018 was discovered.