TAGBILARAN CITY, Bohol, Sept 8 (PIA)–Leaping to action over complaints of members being charged with health care premiums without prior agreement by a credit cooperative, the Sangguniang Panlalawigan (SP) Committee on Personnel and Related Policies led by Board Member Elpidio Bonita flexes its power, in aid of legislation to fix the issue and keep similar incidents from happening again in the future.
It was through Ramil Rodela, a member of Cebu Court of First Instance (Cebu CFI) Community Cooperative that the SP learned that members of the credit cooperative were imposed of health care premiums in the company’s Mutual Medical Assistance Fund (MMAF), sans any agreed legal instruments, like duly signed contract or policy that details the premium fees, coverage and their accredited health institutions.
When he realized such deductions without his prior knowledge, Rodela withdrew his membership, so he could get off that seemingly oppressive system.
What he did not know is that his resignation was still subject to his being cleared of all his outstanding health care obligations, which he himself did not even know existed.
Rodela’s experience was that same as with another Capitol employee Fortunato Cosap.
Cosap, whose Cebu CFI membership started in 2012, claimed he had no idea he has existing obligations with the coop.
Cebu CFI started in response to abusive lending practices imposed upon court employees, leaving most employees without net take home during paydays; these have been held hostage by money lenders at usurious interest rates.
Created to free employees from “loan sharks,” Cebu CFI pooled funds from its personnel and friends into a common fund to lend to employees at enticing rates.
Over the years, CFI expanded to government and private offices and establishments, prompting the name Community to be added in its official business name.
In Bohol, at the SP Committee hearing, Cebu CFI manager in Bohol, Guadalupe Rollan, explained that the MMAF is a built-in health care offered upon membership, and that it was explained as part of the orientation after the application of membership.
Meanwhile Cebu CFI Regional manager Junalyn Guzman belies Capitol employees’ claims saying that CFI sends out notices to members attendance to annual general assembly where updates and programs are shared to members.
She added that prior to pandemic, MMAF was optional, and that members who own health care policies with other providers may not avail of the MMAF. By 2020 however, CFI management updated the MMAF from optional to mandatory for all members through a virtual General Assembly decision by members.
Over this, BM Gloria Gementiza stressed that members should be given the option to avail of the MMAF, or not.
As Cebu CFI is a cooperative and not an insurance company, it does not have a policy; but rather a pooled fund where members help one another during unexpected and unwanted health crisis through the premiums paid, CFI said.
In Bohol, Cebu CFI tapped Bohol Doctors Hospital as the sole accredited health institution, and that the MMAF can only be availed by a member who is actively paying for the MMAF premium of P 520 per month or P6,240.00, deposited to the pooled fund of the CFI.
It is also a policy for the coop to ban a member from withdrawing his membership until he fully settles his obligations and dues, including the MMAF premium.
On the other hand, Human Resource and Development Officer Anne Mariquit D. Oppus, Ph.D.,, who had just barely a year in office said the Memorandum of Agreement which former Gov. Erico Aumentado in 2002 signed with CFI, was limited to the payment scheme of the loan obligations of its members, leading her to ask the community cooperative a copy of any agreement with members allowing the Provincial Treasurer’s Office to deduct.
There was none.
A lawyer at the Provincial Legal Office, Atty. Alona Cristal, pointed out the irregularities like absence of signed agreement or contract by member upon availing of the loan, and health insurance, and the creditor apparently fails in the compliance with the “Truth in Lending Act or Republic Act No. 3765.
This law requires creditors’ full disclosure of information incident to a credit transaction.
She argued that prior to the deduction or offering a loan, there must be a promissory note which embodies all the requirements of the law, and a separate document or a promissory note that states that the employee may or may not avail of MMAF, or in case the employee should avail, CFI must have a separate agreement that itemizes all those terms and conditions for the members to understand, the MMAF.
Short of saying it was ‘void ab initio,‘ Atty. Cristal bared that since CFI failed to comply with the requirements of law and with the virtual assembly possibly not getting the required minimum attendance requirements, wavered and hinted for members a possibility of condoning the MMAF Premium contributions.
And while the CFI legal department studies the Committee Hearing proceedings and issues, the SP committee moves to pass a resolution requesting Cebu CFI Community Cooperative to provide the Provincial Government of Bohol a draft document of Promissory Note with Authority to Deduct to be reviewed by the Provincial Legal Office, another resolution requesting the Governor’s Office to revisit the 2002 Memorandum of Agreement for appropriate amendments, with all the terms and conditions, subsequently, to be reviewed by the Provincial Legal Office and submit to CFI for concurrence.
For the need to get information through the members, the SP Committee also resolves to request Cebu CFI- Bohol Branch to conduct this year’s Emergency Congress with its Members to answer all concerns and issues, particularly the MMAF, furnish each member a Statement of Account especially on the MMAF, and hold in abeyance the collection of premiums for the MMAF until the surfaced issues are resolved.
The Committee during the hearing also attended by BM Nathaniel O. Binlod, PHRMDO Oppus, Atty. Cristal; Bohol Provincial Employees League president Susan Datahan, Rodela, Cosap, BM Tomas D. Abapo, Jr and the Committee Secretariat also asked the Provincial Legal Office and Bohol Provincial Employees League (BOPEL) to extend assistance to personnel of the PGBh with legal problems with the Cebu CFI. (PIA-7/Bohol)
