Another HMO placed under conservatorship

MANILA, Philippines — The Insurance Commission (IC) has placed health maintenance organization (HMO) Getwell Health Systems Inc. (GHSI) under conservatorship amid its inability to address requirements from the government.

In a notice, IC commissioner Reynaldo Regalado informed the public that GHSI is being placed under conservatorship, a status that would allow the regulator to be involved in the management until the viability of the HMO is restored.

The IC said GHSI could comply with the requirements and orders under the guidelines on security deposit requirements aimed at protecting the interests of enrolled members and assuring continuation of health care services.

Under the guidelines, security deposits shall at all times be not less than 25 percent of the actual paid-up capital or P5 million, whichever is higher.

Latest data showed that GHSI has a paid-up capital of P15 million as of end-2024.

As such, GHSI is ordered to cease and desist from taking HMO business of any kind.

Under the law, the IC may put an HMO under conservatorship if it finds that it is in a state of continuing inability or unwillingness to comply with its obligations to policyholders.

As of end-2024, GHSI’s assets stood at P142.62 million and its capital stock was at P60 million, above the minimum requirement.

GHSI trimmed its net loss by almost 10 percent to P30.4 million last year despite revenues dropping by nearly 80 percent to just P111.35 million.

The company’s health care benefits and claims declined by 77 percent to P54.83 million.