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A new law will be needed to halt the imminent implementation of the premium increase from the Philippine Health Insurance Corporation (PhilHealth) and the Social Security System (SSS).
The Department of Health (DOH) explained that the state insurer is mandated to increase its contribution from 3 percent to 3.5 percent this year under the Universal Health Care Act.
“Therefore, there must be an amendment in the law to defer or delay the imposition or implementation of the premium contribution rate. [hike]”Said on Monday the Secretary of Health, Francisco Duque III, in an interview with PTV.
In addition to PhilHealth, the Social Security System (SSS) is also scheduled to increase your premium this year.
Lawmakers and labor groups are pushing for such premium increases for PhilHealth and SSS to be postponed due to the economic slowdown from the novel coronavirus disease (Covid-19), which caused the displacement of many workers last year.
In the case of SSS, Senator Joel Villanueva said he has already introduced Senate Bill 1965 to postpone his premium increase this year to allow workers to cope with the effects of the pandemic.
The SSS contribution rate should have increased from 12 percent to 13 percent by 2021.
“In our proposed bill, we want to maintain the status quo only for this year,” Villanueva said.
He said he is confident that SSS could afford to postpone its rate hike as it was able to post revenue worth P220 billion in 2019.
On Sunday, lawmakers urged state-owned PhilHealth to consider suspending the increase in its members’ premium contributions for six months, citing the notion of a “fortuitous event” with the Covid-19 pandemic.
House Health Committee Vice Chairman Michael Defensor of Anakalusugan said PhilHealth’s board of directors should meet to consider suspending the increase in contributions from 3.0 to 3.5 percent of members’ monthly income. His speech was echoed in the Senate by the head of the Health Committee, Senator Christopher “Bong” Go.
However, when BusinessMirror asked for comment, PhilHealth cautioned that suspending the scheduled increase in premium contributions would make it more difficult for its members to maintain benefit payments in the long term.
“Our rough estimate is that PhilHealth will postpone less than P500 million in incremental premiums annually from direct payers. The P500 million is a drop in the bucket for PhilHealth. However, if the money is taken out of the pockets of salaried employees, especially those who earn the minimum wage, it will increase their financial difficulties, ”said Defensor.
In seeking the deferral of the scheduled increase in monthly contributions, Senator Go said, “While I recognize that this increase is required by law, we must explore all possible legal remedies to avoid any additional burdens on Filipinos at this time when we are still addressing the impacts of the Covid-19 pandemic “.
He said he would personally appeal to President Duterte to order the postponement and for economic managers to explore options to “postpone or restructure the terms and rates of payment of various financial obligations in accordance with existing laws.”
PhilHealth spokesman Rey Baleña said on Sunday that they respect the lawmakers’ position, but warned of its implications.
Baleña said that PhilHealth is mandated by UHC to implement the increase in the premium contribution. “Our ability to sustain long-term benefits will suffer,” Baleña said, partly speaking Filipino.
Asked to comment on Defensor’s speech, Baleña told BusinessMirror separately: “We respect the views of Cong. Defender, however the issue is a matter of law and only Congress has the power to amend the law ”.
Baleña explained in the radio interview that the total payment of PhilHealth’s projected benefit for 2020 is expected to reach P177 billion, higher than the P148.2 billion they expect to receive from direct contributions and subsidies from the national government.
The state health insurer projected that direct contributions will reach P76.8 billion by 2020, in addition to the total P71.3 billion subsidy it expects to receive from the national government.
Currently, he said PhilHealth’s reserve fund is P137 billion.
