MANILA, Philippines – A bill seeking to introduce amendments to the Philippine Insurance Code and place the Insurance Commission (IC) under the supervision of the Bangko Sentral ng Pilipinas (BSP) has been filed at the Senate.
In lodging Senate Bill 2133, Senator Christopher Lawrence “Bong” Go proposed to amend Presidential Decree No. 1460 or the Insurance Code of 1978 to explicitly include health maintenance organizations (HMO) into the law’s regulatory coverage which shall enable the Insurance Commission (IC) to provide stricter supervision.
Go said this will better protect the industry and the public from unscrupulous practices.
At present, HMOs are covered by the IC but Go said it is still unclear if the provisions of the Insurance Code apply to them.
“Itong finile ko po, kahit nasa ilalim ng Insurance Commission ang HMO, ‘di pa rin po malinaw kung nag-apply sa HMO ang mga provision ng Insurance Code. Mas maganda rin na nasa batas,” the senator said in a statement.
“Ang panukala ay naglalayong isali ang HMO sa Insurance Code para ma-protektahan ang interes ng mga kababayan natin at mahikayat ang competitive market sa health insurance industry,” he added.
According to Go, HMOs will be subjected to the provisions of the Code not explicitly provided for in Executive Order 192. These provisions include the commission’s powers to issue cease-and-desist orders to prevent fraud or injury to the public.
This also aims to enhance competition in the insurance industry and effectively improve insurance services for Filipinos.
Under the proposed amendments, the Insurance Commission will also be put under the supervision of the Bangko Sentral ng Pilipinas which ensures that all financial service providers in the country are regulated by a single regulatory authority. The IC’s powers will also be amended under the proposal.
If passed into law, Go expressed optimism that the measure will benefit Filipinos investing in HMOs as it will provide them the necessary safeguards to ensure that their investments are protected.