Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 4729

Introduced by Rep. Precious Castelo

EXPLANATORY NOTE

While there is a prevailing scheme of accreditation as would govern the administration and
‘operation of health maintenance organizations, it is only to the extent that a ‘Clearance to
Operate’ is issued by, at present, the Department of Health, specifically, the Office for Health
Facilities Standards and Regulations.

Health management organizations are akin to business entities that arrange for pre-paid
health care services for their members by contracting with hospitals, physicians and other
health professionals for their services.

The members who are provided with medical services are those duly enrolled with these
HMOs who may be as out-patient or in-patient. However, there are instances that bona fide
cardholders do not get to avail of their maximum benefits that they should otherwise enjoy by
way of exemptions.

To this end, there must be a regulatory commission to take charge of multi-faceted problems
that now plague this industry as the ones that serve as medical services providers in the
broad sense of the term.

The commission so created shall be able to address various humiliating experiences of
patients that could have otherwise been remedied or fully addressed since in the absence of
such regulatory body, these problems will continue to permeate this health concern by an
increasing number of current or prospective enrollees.

The immediate enactment of this bill is most earnestly

2S CASTELO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL no! wes

Introduced by Rep. Precious Hipolito Castelo

ANACT
CREATING THE HEALTH MANAGEMENT ORGANIZATIONS REGULATORY
COMMISSION AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1: This Act shall be known as the “Health Management Organizations
Regulatory Commission.”

SEC. 2. There is hereby created this independent Health Management Organizations
Regulatory Commission.

SEC. 3. For purposes of this Act, the Commission shall provisionally adopt its
mandate, control supervision and authority over all health management organizations from
the hitherto existing Office for Health Facilities Standards and Regulations and the Rules
and Regulations on the Supervision of Health Maintenance Organizations as set forth
pursuant to Administrative Order No. 34 of the Department of Health;

Provided, that after two years of transition in the administration and operation of all
health management organizations throughout the country, said Commission shall
automatically evolve as independent in its overall administrative and operations functions as
the proper regulatory agency.

SEC. 4. Thenceforth, the Health Management Organizations Regulatory Commission
shall issue new set of supervisory and regulatory guidelines, rules and regulations to
effectively implement the provisions of this Act.

SEC. 5. All laws, decrees, issuances, executive orders, rules and regulations
inconsistent with the provision of this Act are hereby repealed or modified accordingly.

SEC. 6. This Act shall take effect upon its publication in the Official Gazette and in at
least three newspapers of general circulation thirty (30) days upon its approval.

Approved,