OK of HMO Bill sought

The Association of Health Maintenance Organizations of the Philippines Inc., (AHMOPI) the national trade association of the country’s health maintenance organizations, is strongly batting for the passage of an HMO Bill.

Asked on the significance of the bill, Jesus Quiazon, AHMOPI president, said this will strengthen the industry and deter fly-by-night operators.

"AHMOPI, under the incumbent board, will work for the passage of the bill," Quiazon said.

There are at least four HMO bills pending in Congress but the one industry practitioners appear enthusiastic about is Senate Bill 1466, "An Act Providing Affordable Health Care Services, Through the Health Maintenance Organizations, Regulating Their Operations." The bill, when approved designates the Insurance Commission as the government agency that will supervise and regulate the operations of HMOs.

The pending Senate Bill 1466 offers HMOs several incentives which are expected to better-enhance their operations. These are reduced customs duties on importation of medical equipment used in the health care services of HMOs and other similar providers, exemption from percentage tax, value added tax, and documentary stamp tax, deductible tax from the income of corporations or employers, the amount of which will be the cost of health care membership fees they pay for the health care plans of their employees.

The bill also offers other incentives the Insurance Commission (IC) and the Department of Health may deem proper to recommend subject to the concurrence of the Department of Finance.

The IC draft lists proposed requirements: submission of a business plan and actual report upon application for license; compliance with the minimum paid-up capital, products approval prior to marketing, license of agents, annual submission of financial statements and compliance with the specified standards of solvency.