HMOS to face fines for unsound business acts

The health maintenance organization (HMO) industry will now face penalties for their unsound business acts as the government moves to protect consumers who are availing of financial products and services.

-  LOUISE MAUREEN SIMEON

In its latest circular, the Insurance Commission (IC) released the guidelines defining unsound business acts and providing administrative fines for violations of any HMO authorized to do business in the Philippines.

IC commissioner Reynaldo Regalado said this is in line with the Financial Products and Services Consumer Protection Act that mandates the IC to protect the rights of financial consumers.

These include their right to equitable and fair treatment, right to disclosure and transparency of financial products and services, and right to protection of consumer assets against fraud and misuse.

It also covers their right to data privacy and protection, and right to timely handling and redressal of complaints.

Similarly, the IC is also empowered to issue orders to prevent fraud and injury to the HMO plan holders and industry stakeholders, as well as impose sanctions and appropriate penalties when necessary.