(From Philippine Daily Inquirer)
Byline: Elizabeth L. Sanchez
THE SECURITIES and Exchange Commission (SEC) has asked the Department of Health to address complaints involving medical service provider Caritas Health Shield Inc. (CHSI).
In a letter to Health Secretary Manuel Dayrit, SEC chair Lilia Bautista asked that the DOH check CHSI's trust fund and see whether it can deliver on its promised benefits and services to the public.
The SEC issued the letter following complaints raised by the Philippine Federation of Pre-Need Plan Companies Inc. (PFPPCI).
PFPCI claimed that CHSI has integrated pre-need pension plan features in its health maintenance organization or HMO plan and that the company was soliciting investments from the public without a license.
The pre-need association also claimed that CHSI has not set-up a trust fund to guarantee the delivery of benefits and services to the public and that its paid-up capital is P17 million, far below the P50 million required of pre-need companies.
Last June, the SEC wrote CHSI and brought these concerns to its attention.
CHSI told the SEC that being an HMO, it was under the administrative jurisdiction of the DoH and that all of its health care programs have been submitted to and passed by the DoH.
The SEC said the case of CHSI was not unique since insurance companies and banking institutions have introduced new features to their traditional products that are associated with pre-need products.
"These innovative products are approved and subject to the appropriate regulatory measures imposed by their respective regulatory agencies to address the risks attendant to the new features. We understand the same safeguards were put in place when the DoH approved and allowed the (CHSI) HMO plan to be sold," SEC wrote.
Byline: Elizabeth L. Sanchez
THE SECURITIES and Exchange Commission (SEC) has asked the Department of Health to address complaints involving medical service provider Caritas Health Shield Inc. (CHSI).
In a letter to Health Secretary Manuel Dayrit, SEC chair Lilia Bautista asked that the DOH check CHSI's trust fund and see whether it can deliver on its promised benefits and services to the public.
The SEC issued the letter following complaints raised by the Philippine Federation of Pre-Need Plan Companies Inc. (PFPPCI).
PFPCI claimed that CHSI has integrated pre-need pension plan features in its health maintenance organization or HMO plan and that the company was soliciting investments from the public without a license.
The pre-need association also claimed that CHSI has not set-up a trust fund to guarantee the delivery of benefits and services to the public and that its paid-up capital is P17 million, far below the P50 million required of pre-need companies.
Last June, the SEC wrote CHSI and brought these concerns to its attention.
CHSI told the SEC that being an HMO, it was under the administrative jurisdiction of the DoH and that all of its health care programs have been submitted to and passed by the DoH.
The SEC said the case of CHSI was not unique since insurance companies and banking institutions have introduced new features to their traditional products that are associated with pre-need products.
"These innovative products are approved and subject to the appropriate regulatory measures imposed by their respective regulatory agencies to address the risks attendant to the new features. We understand the same safeguards were put in place when the DoH approved and allowed the (CHSI) HMO plan to be sold," SEC wrote.
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