It's final: No more capital hike for existing HMOs

The government has formally scrapped the increase in the minimum paid-up capital of existing health maintenance organizations (HMOs) as they will instead undergo tiering based on net worth.

- By LOUISE MAUREEN SIMEON

In its latest circular, the Insurance Commission (IC) formalized the revision in the minimum capitalization, financial capacity and other regulatory requirements of HMOs.

The IC last month released the new draft and sought comments from all stakeholders.

"The HMO industry has experienced significant growth in membership and services and is expected to play a larger role in the national health care system," IC chief Reynaldo Regalado said.

"This necessitates updates to the regulatory framework to ensure financial stability, operational efficiency and inclusivity in delivering health care to a broader population," he said.

As such, existing domestic HMOs will continue to have a minimum paid-up capital of at least P10 million.

New HMOs, however, should have a paid-up capital of at least P100 million.