MANILA, Philippines — The Insurance Commission (IC) has placed health maintenance organization (HMO) Forticare Health Systems International Inc. under conservatorship amid its inability to address requirements from the government.
In a notice, IC commissioner Reynaldo Regalado said Forticare is being placed under conservatorship, a status that would allow the regulator to be involved in the management until the viability of the HMO is restored.
The IC said Forticare is unable to comply with the requirements and orders under the minimum capitalization and financial capacity requirement of HMOs.
As such, Forticare is ordered to cease and desist from taking HMO business of any kind.
The IC, however, did not specify which financial capacity requirement Forticare has failed to address.
Under the law, the IC may put an HMO under conservatorship if it finds that it is in a state of continuing inability or unwillingness to comply with its obligations to policyholders.
Data from IC showed that Forticare recorded a net loss of less than P10,000 in the first quarter of 2024 while its health care benefits and claims reached P1.67 million.
Forticare’s assets stood at P116.18 million and its capital stock was at P104.2 million, well above the minimum requirement of P10 million.
The HMO was registered with the Securities and Exchange Commission and the Bureau of Internal Revenue in 2019.
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