NEWS | Lawmakers to amend UHC law, delay PhilHealth contribution hike
By Miraflor Anacio
The implementation of Philippine Health Insurance Corporation’s (PhilHealth) monthly contribution hike from 3% to 3.5% is set to be effective this January. However, the planned hike received massive backlash from the public who deemed it is an additional burden to workers reeling from the effects of the pandemic.
In President Rodrigo Duterte’s speech last January 4, he ordered to delay the planned hike. As a result, legislators suggested reviewing the Universal Health Care (UHC) Law to adjust the schedule of the increase in monthly contributions of PhilHealth members.
Increased monthly contributions
PhilHealth announced before the end of 2020 that there will be an increase in the monthly contribution of its members which will take effect in January 2021. Stated on the released Circular №2020–0005 and 2019–0009, the contribution will increase to 3.5 % from 3% in 2020. Shown on the table are the approved contribution increase with members’ salary bracket:
In accordance with the UHC Law passed in 2019, the premium contribution will rise up by 0.5% every year until 2025. According to Philhealth, this year’s increase would help cover the expenses to combat the COVID-19 pandemic, including its increasing debt to the Philippine Red Cross which now reached almost ₱800 million, this is in addition to the insurer’s ₱1 billion debt paid last November 2020.
Increase concern
After the announcement, the public expressed their concerns and demands for its suspension emphasizing its untimeliness. They also pointed out suspicions recalling the ₱15-billion corruption scandal of the state health insurer which was revealed in August of last year.
For the year 2021, ₱71.4 billion is again allotted to the corruption-riddled PhilHealth.
Health Alliance for Democracy (HEAD) strongly rejected the proposed hike and called on the government to take full responsibility for the people’s health and address the crisis of corruption. The group also called for the abolishment of PhilHealth and to allocate its funds directly for public health, state-run hospitals and health facilities.
“Ang makikinabang dito ay yung mga pribadong institusyon na maging partner sa implementatasyon ng Universal Health Care Law na pamumunuan ng Philhealth. Pagpapakita ito na walang malasakit ‘yung gobyerno para sa mga mamamayan,” HEAD reiterated. “Kailangan i-improve muna ‘yung healthcare delivery system. Sinasabi na namin matagal na ‘di Philhealth ang solution, kung hindi ipatupad yung free, comprehensive at integrated healthcare system.”
In addition, Representative of AnaKalusugan Party-list Mike Defensor also expressed his concerns, saying that since millions of contributors are daily wage earners and other workers reeling from the COVID-19 pandemic, the hike will only add to their financial burden at this time.
“My appeal to Philhealth is to delay the increase by at least six months to give time to Congress to pass an amendatory bill and other measures reforming the agency to make it more efficient and effective, and to lessen corruption, which results in billions in financial losses every year,” Defensor argued.
Suspension of rate hike
President Duterte in his recent recorded briefing advised PhilHealth Chairman Dante Gierran to halt the increased contributions. He also emphasized that the government will look for money to fill up the budget which is supposed to be generated by the increase.
In connection, the upper and the lower house also expressed their readiness to review and amend the UHC law. House Speaker Allan Velasco, along with other 30 legislators are ready to file a joint resolution moving to defer the premium contributions hike until 2022.
“The House of Representatives is ready to review the Universal Health Care Act and its Implementing Rules and Regulations, particularly the provisions on incremental premium rate hike for direct PhilHealth contributors,” said Velasco.
Meanwhile, Senator Grace Poe, alongside Senators Miguel Zubiri, Joel Villanueva, Nancy Binay, and Sherwin Gatchalian, filed Senate Bill №1968 which seeks to suspend the 3.5% increase on January 5. In response, PhilHealth announced that the rate hike will be suspended until the Congress passes a new law allowing the deferment of the scheduled adjustment.
