THE Insurance Commission (IC) has placed health maintenance organization (HMO) Getwell Health Systems Inc. (GHSI) under conservatorship due to its failure to meet regulatory requirements.
In a public notice, IC Commissioner Reynaldo Regalado announced the move, stating that the conservatorship will allow the IC to oversee GHSI’s management until its financial viability is restored.
The IC cited GHSI’s inability to comply with security deposit requirements designed to protect enrolled members and ensure the continuity of healthcare services.
These guidelines mandate security deposits of at least 25 percent of paid-up capital or P5 million, whichever is higher. While GHSI reported a paid-up capital of P15 million at the end of 2024, the IC determined that GHSI had not met the requirements.
Consequently, GHSI has been ordered to cease all new HMO business activities. The IC’s action is authorized under the law, which allows the placement of an HMO under conservatorship if it demonstrates a persistent inability or unwillingness to fulfill its obligations to policyholders.
Despite having assets of P142.62 million and capital stock of P60 million (exceeding the minimum requirement) as of the end of 2024, GHSI’s financial performance raised concerns.
The company reported a net loss of P30.4 million last year, a 10 percent decrease from the previous year, but this improvement came alongside a nearly 80 percent drop in revenue to P111.35 million and a 77 percent decline in healthcare benefits and claims paid to P54.83 million.
The IC’s conservatorship aims to address these financial challenges and safeguard the interests of GHSI’s members.
metrosundaily
