IC warns Caritas Health Shield

Insurance Commissioner Dennis B. Funa has issued a show cause order against Caritas Health Shield, a health maintenance organization (HMO), ordering it to explain the numerous complaints filed against the company on the alleged fraudulent swiping of credit or debit cards, the commission announced last June 15.

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

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

Misleading

Commissioner Funa said: “Any marketing activity which misleads or tends to mislead consumers into buying HMO products without proper disclosure of the transaction is not tolerated by the Insurance Commission.”

In the show cause order issued by the IC, Caritas Health Shield was ordered to cease and desist from engaging in the activity complained of pending the conduct of an investigation.

Funa said the order against the company requires it “to answer all allegations of fraud and misrepresentation and why no administrative sanction shall be imposed against the company.”

By virtue of Executive Order 192, series of 2015, the jurisdiction over HMOs was transferred from the Department of Health to the Insurance Commission.

Caritas Health Shield was established in 1995 and is primarily engaged in the business of developing, maintaining, arranging for and promoting comprehensive medical and health maintenance services. It is the parent company of Caritas Life Insurance Company and Caritas Financial Plans Inc., a pre-need company, among others. /