THE Association of Health Maintenance Orgnaizations of the Philippines Inc. (Ahmopi) has welcomed the Insurance Commission’s issuance of a cease-and-desist order on Caritas Health Shield Inc. (Caritas Health), pointing out that the decision is in the interest of the buying public.
In a statement sent to reporters on Thursday, Ahmopi Executive Director Carlos da Silva said, “The Caritas Health Shield problem in the HMO industry is truly unfortunate and disheartening. In the interest of the buying public, we welcome the IC’s timely issuance of an order to Caritas Health to cease and desist from selling HMO products and/or transacting new HMO business effective immediately.”
The IC on Wednesday issued a cease-and-desist order against Caritas Health, ordering it to stop selling new products and transacting new HMO business.
Insurance Commissioner Dennis B. Funa issued the order as the commission received numerous complaints on the alleged fraudulent swiping of credit and debit cards, as well as misrepresentations of the company’s sales agents.
Funa earlier required the company to show cause why it should not be ordered to stop selling new HMO products and transacting new HMO business.
Unconvinced by the explanation given by Caritas Health and noting that the company acknowledged there were instances of unauthorized swiping and misrepresentations committed by its sales agents, Funa proceeded with the issuance of the CDO dated July 8, 2019.
Funa pointed out that IC’s continuing receipt of numerous complaints against Caritas Health from the general public “demonstrates the prima facie inadequacy and unresponsiveness of the company’s action plans.”
Simultaneous with the issuance of the cease-and-desist order, Funa also directed the company to continue servicing its existing HMO contracts with its members and to provide uninterrupted conduct of servicing activities.
Funa will be appointing an overseer to ensure Caritas Health’s compliance with his order.
“Pursuant to IC Circular Letter 2018-14 dated 30, January 2018, the Ahmopi stands committed resolving with dispatch issues and concerns brought to its attention by the IC for handling, the Caritas Health complaint cases included,” Da Silva said.