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THE INSURANCE COMMISSION (IC) has placed health maintenance organization (HMO) Getwell Health Systems, Inc. (GHSI) under conservatorship for failing to meet capitalization, financial capacity and security deposit requirements, stopping it from doing business.

GHSI has been placed under conservatorship and prohibited from taking new business effective May 13, the IC said in a notice posted on its website.

“Notice is hereby given that the Insurance Commission has issued a cease-and-desist order against GHSI due to the company’s continuing inability to comply with the requirements and orders of this Commission pursuant to Circular Letter Nos. 2016-41 dated July 29, 2016, and 2019-74 dated Dec. 27, 2019,” the regulator said.

“In line with this, GHSI was ordered to cease and desist from taking any new HMO business of any kind or character and the company was simultaneously placed under conservatorship in accordance with Executive Order No. 192, Series of 2015 and Circular Letter No. 2019-35 dated July 18, 2019 effective May 13, 2025,” it said.

IC Circular Letter 2016-41 outlines the minimum capitalization and financial capacity requirements for HMOs.

Meanwhile, IC Circular Letter 2019-74 lays out the guidelines for the HMO sector’s security deposit requirements.

According to the latest IC data, GHSI posted a net loss of P30.398 million last year.

The company’s capital stock was at P60 million at end-2024.

It had assets worth P142.62 million and liabilities of P220.45 million in the period, IC data showed.

The HMO industry’s net income stood at P979.8 million in 2024 amid higher revenues, a turnaround from the P4.27-billion net loss in 2023. — A.M.C. Sy

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