THE proposed moratorium on the increase in premium contributions of Philippine Health Insurance Corp. (PhilHealth) members will be tackled by the state-owned insurer’s board on Wednesday.
In a joint statement, PhilHealth and the Department of Health (DOH) said they are “cognizant” of the decision of the Office of the President (OP) to suspend the implementation of the premium contribution hike of PhilHealth from 4 percent to 4.5 percent this year.
“The DOH and PhilHealth recognize the suspension is intended to help our kababayans [compatriots] cope with the increasing prices of commodities caused by inflation. Such moratoriums on increases in premium contributions have been done in years 2020 and 2021,” the statement read.
“This was in accordance with directives of the Office of the President, and in recognition of the effects of the pandemic during those years,” it added. The DOH and PhilHealth explained that the contributions collected by the latter are meant to finance the expansion of Filipinos’ benefits under the Universal Health Care Act.
“The matter shall be discussed in the PhilHealth Board Meeting scheduled on Wednesday, January 4, 2023. Further announcements shall be made by the PhilHealth to properly guide the members and employers on the matter,” they said.
Earlier this week, President Ferdinand R. Marcos Jr. ordered the suspension of the increase of PhilHealth member’s premium contributions.
Last month, PhilHealth disclosed that it would launch this year a new benefit package that would address Filipinos’ growing mental health care needs. The new mental health package would have been bankrolled by the funds raised from the increased contributions of PhilHealth members. (Related story: https://businessmirror.com.ph/2022/12/13/philhealth-to-offer-mental-healthcare-benefit-package/)
Scrap hike
MEANWHILE, the Federation of Free Workers (FFW) called on Marcos Jr. to finally scrap the scheduled premium hike.
The FFW maintained government should pay for the additional benefits of PhilHealth rather than the state health insurer’s members.
“We are for scrapping of increase and more government subsidy for public health by amending the law,” FFW President Jose G. Matula said in a text message.
Matula is referring to Republic Act 11223 (Universal Health Care Act of 2019,) which raised the Philhealth premiums to 3.5 percent to 5 percent from 2021 to 2025.
During the weekend, Malacañang announced the suspension of the scheduled PhilHealth premium increase next year from 4 percent to 4.5 percent and the income ceiling from P80,000 to P90,000.
Marcos ordered the implementation of the law’s provision be suspended “to bring financial relief to Filipinos” amid socioeconomic challenges after the Duterte administration ordered lockdown measures to address the Covid pandemic.
That order was lauded by the FFW. The labor group explained through a statement issued last Tuesday that with the suspension, an employer with a hundred workers earning P10,000 each will have reduced costs at P50 for each employee, or a total of P5,000 (P50 multiplied by a hundred) a month from operating expenses for Philhealth insurance.
“Though not that big as this is a light relief for employers and workers as we usher in 2023, it is still a welcome development,” the FFW added.
Matula, however, noted the President must already implement a long-term solution to address the said matter.
He said the issue will be included in the agenda they will raise in a dialogue with Marcos.