The Insurance Commission of the Philippines (IC) has taken decisive action against Carehealth Plus Systems International Inc (CareHealth), placing the company under receivership effective June 27th. This move, mandated by Executive Order No. 192 s. 2015 and IC CL No. 2019-35, comes as a response to CareHealth’s mounting financial challenges.
Attorney Erwin C. Onglengco has been appointed as the receiver tasked with overseeing CareHealth’s operations during this period. His evaluation has revealed severe liquidity issues within CareHealth, leading to significant delays in meeting financial obligations. As a result, the IC has implemented a Stay Order, halting all payments of claims and enforcing several key directives:
Suspension of legal actions to enforce claims against CareHealth, including those managed by the IC’s Claims Adjudication Division.
Prohibition on CareHealth from selling or transferring any assets without approval.
Restrictions on payments of liabilities, except for necessary administrative expenses.
Requirement for CareHealth to settle all approved administrative expenses incurred after the issuance of the Stay Order.
The Stay Order is intended to safeguard CareHealth’s assets for the benefit of its members and stakeholders until its financial stability is restored or the company proceeds to liquidation. Interested parties are instructed to submit their claims to Attorney Onglengco at specified locations.
In related developments, the House appropriations committee has called on the Philippine Health Insurance Corporation (PhilHealth) to provide a detailed report on a recent data breach affecting millions of individuals.
For further details, the Stay Order will be published in a newspaper of general circulation in the Philippines, ensuring transparency and compliance with regulatory protocols.
This action underscores the IC’s commitment to ensuring the integrity and stability of the health insurance sector in the Philippines amidst ongoing challenges.
