Philippine Insurance Commission places Carehealth under receivership
Philippine Insurance Commission places Carehealth under receivership | Insurance Business Asia
Life & Health
Philippine Insurance Commission places Carehealth under receivership
Claim payments halted
Life & Health
By
Roxanne Libatique
The Insurance Commission of the Philippines (IC) has announced that Carehealth Plus Systems International Inc (CareHealth) has been placed under receivership, effective June 27.
This decision follows Executive Order No. 192 s. 2015, which assigned the oversight and regulation of Health Maintenance Organisations (HMOs) to the IC, and IC CL No. 2019-35.
The evaluation by Onglengco revealed that Carehealth is facing significant liquidity issues, resulting in delays and difficulties in fulfilling its financial obligations. Consequently, the IC has stayed or suspended all payments of claims as of June 27.
Key directives include:
suspension of all actions or proceedings to enforce claims against Carehealth, including those managed by the Claims Adjudication Division of the IC
suspension of actions to enforce judgments, attachments, or other provisional remedies against Carehealth, including those by the Claims Adjudication Division
prohibition on Carehealth from selling, encumbering, transferring, or disposing of any of its properties, except in the ordinary course of business with approval from the receiver and the IC
prohibition on Carehealth from making payments of its liabilities as of June 27, 2024, except for administrative expenses and those approved by the IC
requirement for Carehealth to pay in full all approved administrative expenses incurred after the Stay Order
suspension of the institution of formal cases against Carehealth to avoid unnecessary litigation expenses for plan holders
temporary nature of the Stay Order, which may be lifted by the IC once Carehealth’s liquidity is restored or if the company enters liquidation
Members, creditors, and interested parties are instructed to submit their claims to Onglengco at the Carehealth Office, Mezzanine, Grand Riviera Suites, Roxas Blvd. cor. Padre Faura St., Ermita, Manila, or via email at [email protected].
Stay Order against Carehealth
The IC has issued a Stay Order against Carehealth to protect and preserve its assets for the benefit of its members and stakeholders. Payment of claims is suspended until Carehealth is either restored to liquidity or proceeds to liquidation.
The Stay Order will be visibly posted at the IC and at the entrance of Carehealth’s office. The receiver is also required to publish this Stay Order in a newspaper of general circulation in the Philippines once a week for three consecutive weeks, in accordance with Circular Letter No. 2016-34 dated June 21, 2016.
In other news from the Philippines health insurance sector, the House appropriations committee recently requested the Philippine Health Insurance Corporation (PhilHealth) to provide a comprehensive report on the data breach that occurred in September 2023, possibly affecting 42 million individuals.
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