IC formally raises HMO capital requirementThe Insurance Commission (IC) on Friday formally signed the circular that requires all health maintenance organizations (HMOs) to have a minimum paid-up capital of at least P10 million for existing HMOs and P100 million for new players. Meanwhile, new HMOs must have a minimum paid-up capital of P100 million before obtaining a license to operate in the Philippines. All existing HMOs must have a minimum paid-up capital of at least P10 million. The Circular also said that community-based and cooperative HMOs are required to maintain a paid-up capital equivalent to 50 percent of what is prescribed for regular HMO. The Commission may increase the minimum paid-up capital and net worth requirement to an amount that, in its opinion, would reasonably assure the safety and the interests of the HMO members and the public, the Circular stressed.

Source: Manila Times July 29, 2016 13:30 UTC