REPRESS)

OE. Filed”
RECENED

DATE August 4, 2025

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

en EN

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO.2992
Introduced by Representative ANTOLIN “LENLEN” A. ORETA III

EXPLANATORY NOTE

Article II, Section 15 of the 1987 Constitution declares that the State shall protect and promote
the right to health of the people and instill health consciousness among them. Further, Article
13, Section 11, recognizes the duty of the state to adopt an integrated and comprehensive
approach to health development.

Health Maintenance Organizations or HMOs have become a practical option for individuals
and families who seek better access to medical services. HMOs reduce out-of-pocket costs and
offer manage care through prepaid plans. However, despite their role in the Philippine health
care system, HMOs remain largely unregulated.

This bill seeks to recognize HMOs as unique medical service providers that combine financial
management with the direct and indirect provision of health care. It proposes a regulatory
framework that will protect patients” rights and ensure access to quality, affordable health
services. It also creates the Center for Managed Care Services, which will oversee and regulate
the operations of HMOs nationwide.

The bill further encourages better coordination between PhilHealth and HMOs to reduce or
remove out-of-pocket expenses for health care. It also ensures that the rights of HMOs, health
providers, and members are respected and protected

In view of the foregoing, the immediate passage of this bill is earnestly sought.

Antoun “LENLEN” A. ORETA IIL

Lone District of Malabon City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon Ci

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO, 2992

Introduced by Representative ANTOLIN “LENLEN” A. ORETA III

AN ACT

ENSURING THE ACCESS OF ALL FILIPINOS TO THE HIGHEST ATTAINABLE
STANDARD OF HEALTH AND IMPROVING HEALTH FINANCING SECURITY OF
ALL FILIPINOS THROUGH HEALTH MAINTENANCE ORGANIZATIONS,
REGULATING THEIR OPERATIONS BY ESTABLISHING A CENTER FOR

MANAGED CARE SERVICES, APPROPRIATING FUNDS THEREFOR AND FOR
OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1, Short Title. - ‘This Act shall be known as the “Health Maintenance
Organizations Act.”

SEC. 2. Declaration of Policy. - Itis the policy of the State to protect and promote
the right to health of the people and instill health consciousness among them.

To this end, the State shall:

a. Enhance the ace ty to affordable healthcare services through the participation of the
private sector in providing, funding, and managing healthcare services to the people;

b. Ensure that all medical care services managed by the private sector are aligned with the
constitutional rights of all people to the highest attainable standard of health and with the
National Agenda of the Philippines;

. Encourage the growth of Health Maintenance Organizations (HMOs) in the country by
providing government support, incentives, technical assistance, and ease of doing business;
and

d. Ensure greater acces
policies.

lity to quality health care through affordable health insurance

SEC. 3. Objectives. - In line with the above policy, this Act seeks to:

a. Recognize HMOs as unique medical service providers combining financial management
and the direct and indirect provision of health services;



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Establish a national framework for the regulation of HMOs that shall uphold the rights of
the people, ensure the delivery of quality and timely health services, and uphold the rights
of patients;

. Establish the Center of Managed Care Services (CMCS) that shall be responsible for the

coordination with, regulation, and oversight of HMOs in the country;

Improve the inter-operability between PhilHealth and HMOs to decrease further or
eliminate out-of-pocket expenditures for health in the country; and

Recognize and protect the rights of HMOs, healthcare providers, and members.
SEC. 4. Definition of Terms. — As used in this Act:

Actuary refers to a person with the necessary training, qualifications, and experience and
a fellow of the Actuarial Society of the Philippines. He shall, among others, compute rates
and reserves for health care plans based on experience tables, determine the financial
soundness of health care agreements and operations of HMOs, and design creative ways
to reduce the likelihood and decrease the impact of adverse events that may occur in the
operation of HMOs;

Agreement refers to a contract entered into by an HMO with a member or group of
members, or a corporation on behalf of its employees and/or their dependents, for the
former to provide or arrange pre-agreed or designated healthcare services to the latter, for
a fixed period and a specified fee;

Claim refers to a statement of services submitted to an HMO by a healthcare provider
following the provision of covered services to a member that shall include diagnoses and
itemization of services and treatment provided to the member;

Corporation refers to a juridical person as defined by law, duly registered with the
Securities and Exchange Commission;

Covered Services/Coverage reters to healthcare services to be delivered by a healthcare
provider to a member as provided for in a health care policy;

Enrollment Fee refers to the amount of money paid to an HMO by an individual member,
group, or corporation on behalf of its employees and their dependents, in payment for a
pre-agreed set of health services, for a specific period;

Health Maintenance Organization (HMO) refers to a type of managed care organized in
accordance with the law to provide pre-agreed or designated healthcare services to its
enrolled members for a fixed periodic fee and a specified period through a network of
healthcare providers. It uses a system of healthcare delivery called managed care that
influences utilization and costs of services and measures performance resulting in quality
cost-effective cate. It integrates financing and delivery of health care services through
managed health plans which may be in the form of a comprehensive HMO plan, preferred
provider plan, managed indemnity or self-insured plans, third-party administration plan,
and other types of a managed health plan.


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h. Health Care Provider refers to a health professional such as a physician, dentist, nurse,
midwife, health care professional group, hospital, diagnostic clinic, or pharmacy licensed
or authorized by the proper government agency to provide active health care services;

i, Health Care Policy refers to an HMO policy comprising an individual set of health service
delivery and compensation procedures offered as a Managed Care product of an HMO to
its members. It specifies Covered Services and all other terms, conditions, limitations,
exclusions, benefits, rights, and obligations thereof to which the HMO and its members
are subject. It may be in the form of a Comprehensive HMO Policy, Preferred Provider
Policy, Managed Indemnity, Long Term Care Policy, Self-Insured Policy or Third Party
Administration Policy;

J. Managed Care refers to a healthcare delivery system that influences utilization and cost
of services and measures performance to deliver quality and cost-effective health care. It
is a complex system that involves the active coordination of, and the arrangement for, the
provision of health services and coverage of health benefits. It involves relationships and
organization of the providers giving care and the covered benefits tied to managed care
rules;

k, Member or Enrollee refers to an individual or a person who is part of a group, or an
employee and/or their dependents, or a corporation, who entered into a contract with an
HMO; and

|. Membership Fee rofers to the amount of money paid by an individual member, group, of
corporation on behalf of its employees and the latter's dependents, in payment for a pre-
agreed set of health services, for a specific period

CHAPTER ONE

HEALTH MAINTENANCE CONTRACT.

SEC. 8. Health Maintenance Contract. — A Health Maintenance Contract is a contract
between an HMO and a member or enrollee, or group of members or enrollees, to provide
coverage for comprehensive healthcare services in exchange for a prepaid per capita or prepaid
aggregate fixed sum. It may cover individuals, families, or group of people with an established
and fixed affinity of association. A Health Maintenance Contract shall also include Third Party
Administration contracts or Administrative Services Only contracts. Italso includes a schedule
of Covered Services and compensations and specifies all other terms, conditions, limitations,
exclusions, benefits, rights, and obligations to which the HMO and health care provider are

subject.

SEC. 6. Tax Exemptions. — To tap and encourage private sector participation in the
government’ thrust to make health services accessible to the low-income sectors of the
population through affordable enroliment fees, domestic corporations, individuals, and resident
corporations shall be allowed to deduct the cost of HMO membership fees from the taxable
income of said employers. :

All benefits received or receivable by any person arising from a Health Maintenance
Contract are exempt from tax. Premiums paid by the employer on behalf of their employees


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and their dependents shall not accrue as income on the employee for the latter's taxation,

All Health Maintenance Contracts issued by registered HMOs shall likewise be exempt
from Value Added Tax, but the same shall be subject to Documentary Stamp Tax at the same
rate applied to Insurance Contracts.

SEC. 7. Secrecy. — The details and contents of a Health Maintenance Contract including
the availments arising from contracts and all sensitive personal information generated and
derived from the negotiations, consummation, and delivery of healthcare services up to five (5)
years from the date of its termination, shall not be disclosed to any third-party including
government investigations without the prior written consent of the data subject. In the case of
corporations, such prior written consent must be exercised by its President with the consent of
its Board, and its consent shall only extend to its collective data and to the individual data of
all members under its plan which shall be exercised by each respective member prior to its
disclosure. In the case of families, such prior written consent must be exercised by the father
or mother, or if absent, by the oldest member of the family, and such consent may be voidable
by any of its family members.

CHAPTER TWO

THE CENTER FOR MANAGED CARE SERVICES.

SEC. 8. Creation and Composition. ~ There is hereby created a Center for Managed
Care Services (CMCS), which shall be under the direct supervision and control of the
Department of Finance. It shall be headed by an Administrator and three (3) Deputy
Administrators. The CMCS shall serve as the primary regulatory body responsible for
overseeing the operation and performance of HMOs in the Philippines.

The necessary plantilla, staffing pattem, and organizational structure shall be
determined by the CMCS, in consultation with the Department of Finance (DOF), subject to
existing rules and regulations and approval by the Department of Budget and Management.

The CMCS shall be created within 180 days from the effectivity of this Act.

SEC. 9. Powers and Functions of the CMCS. - The CMCS shall have the authority to
exercise the following powers and functions over HMOs:

a. Issue rules and guidelines, with respect to the establishment of HMO minimum
capitalization, net worth, reserve funds and security deposit requirements, as well as the
criteria for qualification and disqualification of directors, officers and marketing
personnel, and the procedure for the submission of reportorial and/or examination
requirements, registration of contracts and plans, adjudication of claims, and other
relevant matters, as necessary;

b. Approve, amend, renew, decline, suspend, or revoke any license, registration, or
certificate of authority issued in favor of HMOs;

c. Fix, assess, collect, and utilize fees and/or charges as it may find reasonable in the
exercise of regulatory powers;


m.

Regulate, supervise, and monitor the operations and management of HMOs to ensure
compliance with this Act, existing laws, rules and regulations, and such other directives
and circulars issued by the CMCS;

Issue orders to prevent fraud and injury to the HMO plan holders and industry
stakeholders:

Order the examination of documents, papers, files, tax retums, books of accounts and
other records, in whatever form, of any entity, person, or any HMO under investigation,
including persons, entities and/or corporations with related interests;

Impose sanctions and/or appropriate penalties pursuant to existing laws, rules and
regulations;

Protect the interests of HMO members or enrollees by ensuring that HMOs adhere to
fair and transparent policies in their service offerings, billing, and claims processing;

Establish and enforce minimum quality standards for healthcare services provided by
HMOs to guarantee the delivery of safe and effective medical care to members or
enrollees;

Establish a mechanism for the fair and timely resolution of disputes between HMOs
and their members or enrollees, including appeals for denied claims;

Collect and maintain data on HMO performance, member or enrollee satisfaction, and
overall healthcare trends to inform policy and decision-making;

Collaborate with other relevant govemment agencies, healthcare providers, and
stakeholders to promote a unified and integrated healthcare system in the Philippines;

. Enlist the aid and support of and/or deputize any and all law enforcement agencies of

the government in the implementation of its powers and in the exercise of its functions
under this Act;

Issue appropriate directives, such as but not limited to the appointment of conservators,
receivers or liquidators, to HMOs which fail to comply with this Act, related laws, rules,
regulations, orders, and circulars issued pursuant thereto;

Prepare, approve, or amend, rules, regulations, orders, and circulars, and issue opinions,
provide guidance on and supervise compliance with such rules, regulations, orders, and

circulars;

Formulate policies and recommendations on issues concerning the health maintenance
industry, including proposed legislations; and

Exercise such other powers as may be provided by law as well as those which may be
implied from, or which are necessary or incidental to carry out the express powers
granted the IC to achieve the objectives and purposes of this Act.


SEC. 10, Administrator. ~ The CMCS Administrator shall be appointed by the President
of the Republic of the Philippines for a term of six (6) years, upon the recommendation of the
DOF Secretary, without reappointment, and shall serve as such until the successor has been
appointed and qualified.

The Administrator shall have the duty to cnsure that all laws relating to HMOs are faithfully
executed to ensure the efficient regulation of the HMOs in accordance with global best
Practices and to protect the public, He may issue such rulings, instructions, circulars, orders,
and decisions as he may deem necessary to secure the enforcement of the provisions of this
Act, subject to the approval of the Secretary of Finance.

SEC. 11. Powers of the Administrator — To: effectively carry out the mandate of the CMCS,
the Administrator has the power to:

a) Approve. reject, suspend, or revoke licenses or certificates of registration as
provided for in this Act;

b) Impose sanctions for the violation of this Act and the rules, regulations, and orders
issued pursuant thereto;

©) Prepare, approve, amend or repeal rules, regulations, and orders, and issue opinions
and provide guidance on and supervise compliance with such rules, regulations and
orders;

4) Enlist the aid and support of, or deputize any enforcement agency of the government
in the implementation of its powers and functions under this Acti

©) Issue cease and desist orders to prevent fraud or injury to the public:

f) Cite for contempt of the Administrator, both direct and indirect, in accordance with
the pertinent provisions of and penalties prescribed by the Rules of Courts:

) Compel the officers of any registered HMOs to call meetings of stockholders or
members thereof under its supervision;

h) Suspend or revoke, after proper notice and hearing, the license or certificate of
authority of any entity or person under its regulation, upon any of the grounds
provided by law;

i) Conduct an examination to determine compliance with laws and regulations if the
circumstances so warrant as determined by appropriate rules and regulations;

J) Investigate not oftener than once a year from the last date of examination to
determine whether an institution is conducting its business on a safe and sound basis:
Provided, That, the deficiencies! irregularities found by or discovered by an audit
shall be immediately addressed;

k) Inquire into the solvency and liquidity of the institutions under its supervision and
enforce prompt corrective action;


1) Retain and utilize all fees, charges, and other income derived from the regulation of
HMOs;

m) Fix and assess fees, charges, and penalties in the exercise of regulation; and {3
n) Exercise such other powers as may be provided by law as well as those which may
be implied from, or which are necessary or incidental to the express powers granted

to the CMCS to achieve the objectives and purposes of this Act.

Except as otherwise specified, decisions made by the Administrator shall be appealable to
the Office of the President.

SEC, 12. Exclusive Powers of the Administrator. - The Administrator shall have the
power to adjudicate claims and complaints arising from Health Maintenance Contracts issued,
where the amount of any such loss, damage, or liability, excluding interest, cost, and attorney's
fees, being claimed or sued does not exceed in any single claim Five million pesos
(PHPS,000,000,00)..

The Administrator may authorize any officer or group of officers under it to conduct
investigation, inquiry, and/or hearing and decide claims, and may issue rules governing the
conduct of adjudication and resolution of cases. The Rules of Court shall have suppletory
application.

The party filing an action pursuant to the provisions of this section thereby submits his
person to the jurisdiction of the Administrator. The Administrator shall acquire jurisdiction
over the person of the impleaded party or parties in accordance with and pursuant to the
provisions of the Rules of Court.

SEC. 13. Deputy Administrators. — The CMCS shall have three (3) Deputy
Administrators for Legal Services, Health Services, and Financial Management who shall be
appointed by the President of the Republic of the Philippines, upon the recommendation of the
DOF Secretary, for a term of six (6) years without reappointment and who shall serve as such
until the successors have been appointed and qualified.

The Deputy Administrator for Health Services shall be a licensed health professional with
a proven track record for the management of health services and financial instruments. The
Deputy Administrator for Finance shall be a Certified Public Accountant.

SEC. 14. Conflict of Interest. — The Administrator and his Deputy Administrators shall
avoid any conflict of interest that may arise from their official duties. They shall refrain from
participating in any decision-making process that may directly or indirectly benefit their
personal or financial interests.

SEC. 15. Reporting and Accountability. The CMCS shall regularly report its activities,
accomplishments, and financial status to the Secretary of Finance for review and assessment.
‘The Administrator shall submit an annual report to the Congress of the Philippines, including
an evaluation of the HMO industry's performance and recommendations for further
improvements.


CHAPTER THREE
REGISTRATION AND LICENSING

SEC. 16. Registration. — No entity, natural or juridical, shall operate in the Philippines
without first obtaining registration and a license from the CMCS. Any Filipino corporation,
duly formed and organized under the Revised Corporation Cade, may register and apply for a
license to conduct business as an HMO with the CMCS provided that it has a minimum paid-
up capitalization of not less than Two hundred million pesos (PHP 200,000,000.00).

HMOs shall comply with the minimum capital requirements set by the CMCS to ensure
their financial stability and ability to provide healthcare services. HMOs must demonstrate
compliance with the quality standards set by the CMCS and submit periodic reports as required
by the CMCS,

SEC. 17. Minimum Required Paid-up Capital. —

a) AILHMOs seeking registration and licensing from the CMCS must have a minimum
required paid-up capital of Two hundred million pesos (PHP 200,000,000.00) upon
application;

b) The paid-up capital requirement shall be subject to periodic review by the CMCS to
censure its adequacy in supporting the financial stability and sustainability of HMOs;

©) HMOs shall submit proof of the required paid-up capital as part of their application
for registration and licensing. Failure to meet the minimum capital requirement shall
result in the denial of their application until such requirement is satisfied;

d) The CMCS shall issue guidelines and regulations detailing the procedures for
verifying and validating the paid-up capital of HMOs during the registration process.

SEC. 18. Adjustment of Minimum Paid-up Capital. —

a) The CMCS, in consultation with relevant stakeholders and based on prevailing
economic conditions, may adjust the minimum required paid-up capital to keep pace
with inflation and market demands;

b) Any adjustment to the minimum required paid-up capital shall be done with due
notice to all existing HMOs, giving them a reasonable period to comply with the new
requirement.

SEC, 19, Actuaries/Financial Consultants. — To protect the potential and enrolled
members of the HMOs, the CMCS shall ensure that HMOs adhere to actuarially sound
practices and possess financial capabilities to render the services stipulated in their agreements.

To achieve these objectives, the CMCS shall engage the services of actuaries and/or
financial consultants to analyze the financial status and the actuarial soundness of the HMO
practices prior to issuance or renewal of licenses. For this purpose, the CMCS shall require
from HMOs such additional data and reports it deems necessary: Provided, That, such data and
reports are certified by either an actuary, financial consultant, or external auditor.


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SEC. 20. Arbitration and Review. — HMOs shall provide an internal mechanism where
disputes between parties to a Health Care Policy or parties to an internal Care Provider Contract
‘may be resolved in an expeditious manner. In the event that the dispute is unresolved, a member,
health provider, or an HMO may elevate the case directly to the CMCS for binding arbitration.
However, if the CMCS determines the conflict to be medical in nature or requiring a review of
medically necessary decisions, the case shall be referred to an HMO Medical Review
Committee to be constituted by the DOF for judgment.

SEC. 21. Grandfather Rule.— All HMOs duly licensed by the Insurance Commission upon
approval of this Act shall be deemed registered and licensed to conduct business as an HMO:
Provided, That all HMOs are given five (5) years to comply with any requirements imposed
by this Act or by the CMCS,

SEC. 22. Term. ~ All licenses issued by the CMCS shall be effective for not more than five
(5) years and renewable for another five (5) years within thirty (30) days from its expiry.

SEC, 23. Ease of Doing Business. — The CMCS shall, as far as practicable, act upon all
applications within thirty (30) days from the date of submission.

‘The CMCS shall strictly adhere to Republic Act No. 11032, otherwise known as the “Ease
of Doing Business and Efficient Government Service Delivery Act of 2018”.

SEC. 24. Grounds for Revocation of License. The CMCS shall revoke the license of any
HMO, after due process, on the following grounds:

a) Repeated violations of this Act;

b) Repeated suspension of HMO license;

) Unjustified refusal to provide the healthcare services contracted for by a member as
provided for in the agreement; and

4) Impairment of the financial status of HMO, as may be determined by the CMCS during
suspension.

In all cases of revocation, the enrollees or members of HMOs should be properly consulted
and have the final say as to which HMO they wish to be transferred.

SEC. 25. Grounds for Suspension of License. The license to operate issued to HMOs
may be suspended by the CMCS, after due process, on the following grounds:

a) When based on the financial reports, continued operation of the HMO business is no
longer financially sound;

b) When without justifiable cause, agreements with members are not honored;

c) When the statements in the application for license or renewal thereof are found to be
false, misleading, inadequate, or incomplete such that the Department cannot ascertain


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the true status from such statement, sufficient to arrive at an honest appraisal of the true
capability of the HMO;

d) When the decision of the CMCS or arbitration of complaint is not honored by an HMO;
and

¢) When an HMO continuously violates the rules and regulations issued by the CMCS.

SEC 26. Penal Clause. ~ The following sanctions and penalties are hereby imposed for
violations of this Act:

a) A fine of Twenty thousand pesos (PHP20,000.00) for the first violation of the
provisions of this Act, ‘Thirty thousand pesos (PHP30,000.00) for the second; and Fifty
Thousand Pesos (PHP50,000.00) for the third violation. For the fourth violation of this
Act, the provision of Section 25, shall apply;

b) A fine of One hundred thousand pesos (PHP 100,000.00) every time the license of the
HMO is suspended. Provided, that the payment of this fine shall not absolve the HMO
of its obligations under the agreements it has contracted with members and/ or
participating or accredited providers; and

©) An order to freeze the assets of the HMO suspended or revoked for the protection of
investors, providers, and members.

In addition thereto, the Administrator is hereby authorized to impose the following
penalties upon HMO companies, their directors and/or officers and/or agents, for any willful
failure or refusal to comply with, or violation of any provision of this Act, or any order,
instruction, regulation, or ruling of the Administrator, or any commission or irregularities,
and/or conducting business in an unsafe or unsound manner as may be determined by the
Administrator:

a) Fines not less than Five thousand pesos (PHP5S,000.00) and not more than Two hundred
thousand pesos (PHP200,000.00); and

'b) Suspension or removal, after due hearing, of directors and/or officers and/or agents.

‘The amount that may be collected as fines shall be retained by the CMCS for its use in the
information dissemination mentioned in the following section. Provided, That a separate
account shall be maintained by the CMCS for such purpose.

Violations committed by HMOs in the direct provisions of healthcare services,
performance of laboratory or diagnostics services, and operations of hospitals or clinies shall
be subject to applicable rules and regulations of the Department of Health.

SEC. 27. Reinstatement of Suspended or Revoked Licenses. - The CMCS may reinstate a
suspended or revoked license upon a reasonable showing that the ground for which the
suspension or revocation was based has ceased to exist and that the HMO has sufficiently
complied with the requirements the CMCS may determine for such reinstatement.

SEC. 28, Publication. - The CMCS shall inform the public by publishing periodically:


a) List of licensed HMOs; and

b) Suspension and/or revocation of the license of HMOs, copies of which shall be
furnished to associations of the medical profession, hospitals, and employers who shall
inform their members accordingly.

SEC. 29, Exemption from Anti-Money Laundering Compliance. ~ HMOs shall be
excluded from the obligations and requirements set forth in Republic Act No. 9160, otherwise
known as the “Anti-Money Laundering Act of 2001,” as amendments. However, HMOs shall
still be subject to reporting suspicious transactions involving large or unusual financial
activities to the appropriate authorities as mandated by relevant laws and regulations.

SEC. 30. Appropriations. — The amount necessary for the implementation of this Act shall
be included in the General Appropriations Act of the year following its enactment and every
year thereafter.

SEC. 31. Transitory provision. - The Insurance Commission (IC) and the CMCS may enter
into inter-agency agreements, to ensure the full and appropriate transfer of all functions related
to HMOs including, but not limited to, temporary detail of personnel concerned to the CMCS.

All books, contracts, correspondences, documents, papers, records, other associated items,
and pending business in any way pertaining to the powers, duties, rights, and responsibilities
related to the functions of the IC over HMOs shall be turned over, transferred, and delivered to
the CMCS for continuation, modification, or termination; Provided, That the delivery of such
information shall not violate any applicable confidentiality constraints.

The CMCS shall constitute a special team to handle all matters related to HMOs and shall
secure and transfer all the HMO-related files and records of the IC to the CMCS within ninety
(90) days from the effectivity of this Act. Personnel under the IC affected by this Act shall
continue their service with the CMCS. They may, however, be detailed to the CMCS for
efficient transition and effective discharge of the functions provided under Act and its
implementing rules.

SEC. 32. Creation of Oversight Committee. To ensure the effective transfer of the
jurisdiction and regulation over HMOs to the CMCS, an Oversight Committee composed of
the Secretary of Finance, as Chairman, with the Secretary of Health and the Insurance
Commissioner, as members, is hereby constituted.

SEC. 33. Role of the DOH.-. All issues relating to medical matters including, but not
limited to, practice of the medical profession, medical procedures and standards, and health
programs, policies, services, and facilities, shall be referred to the DOH.

SEC. 34. Implementing Rules and Regulations. — The CMCS shall promulgate the rules
and regulations necessary to implement this Act within ninety (90) days from the creation of
CMCS. Such rules and regulations shall be furnished to HMOs and concerned sectors and shall
take effect upon publication in a newspaper of general circulation.


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SEC. 38. Separability Clause. ~ If any provision or part of this Act is declared invalid or
unconstitutional, the remaining parts or provisions not affected shall remain in full force and
effect.

SEC. 36. Repealing Clause. — Pertinent provisions of RA 9165, and all other laws, decrees,
orders, rules and regulations, or parts thereof, inconsistent with any provision of this Act are
hereby repealed or modified accordingly.

SEC. 37. Effectivity. - This Act shall take effect Fifteen (15) days after its complete
Publication in the Official Gazette or in a newspaper of general circulation.

Approved.