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Philippines
Thursday, March 28, 2024

Govt starts probe on HMO provider

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The Insurance Commission said it issued a show cause order against Caritas Health Shield, a health maintenance organization, to explain the numerous complaints filed by customers on alleged fraudulent swiping of credit or debit cards. 

The commission said in the show cause order that Caritas Health Shield should cease and desist from engaging in the activity, pending the conduct of an investigation. 

Based on the complaints filed before the commission, agents of Caritas Health Shield would resort to different marketing strategies including offering of freebies in order to entice an individual to surrender his/her credit or debit card without disclosing that the same would be used to enroll him/her as member of Caritas Health Shield and to pay for the premiums. 

The complainants alleged that it was never their intention to purchase any HMO products and thus requested for the cancellation of their contracts and return of the premiums paid through and charged to their credit or debit cards.

Insurance commissioner Dennis Funa said Thursday that any marketing activity which misleads or tends to mislead consumers into buying HMO products without proper disclosure of the transaction was not tolerated by the commission.

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“Under present regulations, all complaints filed against HMOs received by the IC will be endorsed to the grievance machinery of the Association of Health Maintenance Organizations of the Philippines, Inc., an umbrella organization of HMOs,” Funa said.

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