The Insurance Commission assured plan holders of Caritas Health Shield that the health maintenance organization (HMO) is financially stable amid allegations that it has billions of pesos in capital deficiency.
“As of the latest unaudited financial statement that has been submitted to us specifically the balance sheet, the company is solvent and liquid,” Insurance Commissioner Dennis Funa told reporters in a news conference on Tuesday.
He issued the statement following reports that the HMO has a P7-billion deficiency in its actuarial reserves.
Funa said as of June 2017, the Caritas has P7 billion in reserves and assets worth P8.2 billion. Its liabilities were pegged at P8 billion.
Funa said allegations that the company is having financial problems stemmed from the intracorporate dispute between the majority stockholders and a minority stockholder led by its former president, Teodoro Jumamil, who was removed by its board this year.
Funa clarified that the IC cannot intervene in the company’s intracorporate dispute.
“That is a matter that should be before the courts. We are only looking at the financial strength of the company,” he said.
The IC officials said Caritas plan holders have no reason to worry “based on what we have seen on the company’s balance sheet.”
Caritas Health Shield is reportedly the biggest HMO and preneed firm “hybrid” in the Philippines.
Regulation and supervision over HMOs was transferred from the Department of Health to the Insurance Commission in 2015 by virtue of Executive Order 192.