Members of Caritas Health Shield (CHS) have been left in a state of uncertainty after receiving notices that the health maintenance organization (HMO) has been placed under receivership by the Insurance Commission (IC).
The notices sent to CHS members on August 1, 2023, informed them of the regulatory action taken by the Insurance Commission. Members received a message indicating that CHS would temporarily cease issuing Letters of Authorization (LOAs) for medical treatments and would not accept premium payments, effectively putting all services on hold until further notice.
The regulatory action has been taken to provide CHS with an opportunity to address the concerns raised by the Insurance Commission. Last August, CHS has been given a 90-day window to submit a proposal for rehabilitation, failing which it may face liquidation.
Furthermore, a notice of stay of order has been issued to allow CHS to consolidate, preserve, and protect its assets for the benefit of its members and creditors during the receivership proceedings. This means that while services are temporarily halted, actions or proceedings to enforce claims against the company have been suspended.
In addition to the temporary halt on services and claims, CHS is also prohibited from selling, transferring, or disposing of any of its properties, making any payment of its liabilities, and collecting premiums from its members or renewing existing plans.
While the situation appears challenging, the management of CHS has expressed their commitment to restoring normal branch operations and their services. In a letter published by Caritas on its website, its President and CEO Jun Katipunan said, “I want to reiterate the company’s commitment to the welfare of our members. We are working hard to navigate this difficult time and emerge stronger than before. We appreciate your patience and understanding.”
Caritas members are now awaiting the results from the Insurance Commission (IC) regarding the fate of the health insurance company following the completion of the provided 3-month period. IC has yet to release any updates on CHSI’s receivership.
CHS has earned a strong reputation as a trusted healthcare service provider in the Philippines since 1995, boasting a nationwide network of over 15,000 doctors and 69 branch offices.
Caritas Health Shield has served over 800,000 members since its inception nearly three decades ago. Its subsidiaries, Caritas Financial Plans Inc. and Caritas Life Insurance Corp., have also been placed under conservatorship to ensure their financial stability.
It’s important to clarify that CHSI is entirely unrelated to the non-governmental organization Caritas Manila Inc., which serves as the social outreach arm of the Catholic Church in the Philippines.
