The contract with Medserv was terminated effective August 1, 2009. Selection process for the new HMO provider is ongoing and will be finished on or before end of August. The new HMO contract is expected to commence on September if the selection process would go smoothly.

Forms for ratification of termination of service contract with Medserv and use of unremitted premiums were sent to branches for signature of LBPEA members. One of the stipulations on the subject document is the authority given to LBPEA NEB to make use of the performance bond forfeited from Medserv for the reimbursement of pending medical claims, refund to EFMs, and other related expenses.

Consequently, the HMO vacuum for August prompted the LBPEA NEB to make a decisive move so as to protect the interest of the members. Thus, for the first time in the history of LandBank, LBPEA ventured on the self-insurance scheme or otherwise known as LBPEA HMO Fund Administration. The objective of this scheme is to ensure continuity of health care services from termination of HMO-Medserv contract until a new provider is selected.

Salient Features of the LBPEA HMO Fund Administration

Out-patient/Clinic Services-strictly on reimbursement basis

In-patient/Hospitalization Services– payment upon discharged (excluding Makati Med, St. Luke, Cardinal Santos, & Asian Hospital)

Qualified to avail: principals and qualified dependents enrolled under HMO Medserv Contract. Extended Family Members (EFMs) are EXCLUDED under this scheme but premiums for remaining months will be refunded.

Mode of Payment-
a) Reimbursement basis-for credit to member’s LBP account w/in 30 days from receipt of complete claim documents by LBPEA NEB
b) Upon discharged-manager’s check in favor of the hospital (net of Philhealth)

Patient should notify unit Governor/Unit Representative upon admission and submits the Payment Request Form

On the date of discharge, fax to LBPEA NEB before 12:00noon the Billing Statement(Monday-Friday only). If discharge is on weekend, partial billing may be submitted to LBPEA for partial payment and any excess will be shouldered by the employee subject to reimbursement.