THE Insurance Commission (IC) has placed MEDOCare Health Systems, Inc. (MHSI) under conservatorship for failing to comply with the regulator’s product approval rules.
MHSI was placed under conservatorship and prohibited from doing business effective June 18, according to a notice posted on the IC’s website.
“Notice is hereby given that the IC has issued a cease-and-desist order against MHSI due to the company’s continued noncompliance with the product approval requirements under Circular Letter No. 2017-19, as amended.”
The regulator said MHSI was ordered to cease and desist from taking any new HMO business as the company was simultaneously placed under conservatorship.
IC Circular Letter No. 2017-19 covers the guidelines on the approval of HMO products and forms.
The rules prescribe key features of HMO products and their minimum contract provisions and documentary requirements.
HMOs are not allowed to sell products unless the agreements covering these products — or the contracts between the HMO and a healthcare provider outlining the terms and conditions for the services and benefits included in the product — and related contract forms are approved by the UC.
Products offered by HMOs usually provide medical, surgical and hospital services, as well as preventive care and wellness programs.
These are pre-agreed or designated healthcare services that are provided to enrolled HMO members for a fixed prepaid fee for a specified period of time through a selected network of healthcare providers.
Latest IC data showed MHSI had assets worth P374.8 million and liabilities of P193.5 million as of March.
It posted a net income of P12.6 million in the first three months of 2025. — Luisa Maria Jacinta C. Jocson
