DOH, PhilHealth back proposals to reduce premium rate

This is AI generated summarization, which may have errors. For context, always refer to the full article.

The House of Representatives' proposed amendments to the Universal Health Care Act include cutting state health insurer PhilHealth's premium rate to 3.5%

MANILA, Philippines – The Department of Health (DOH) and the Philippine Health Insurance Corporation (PhilHealth) are open to reducing the state health insurer’s premium contribution rate.

DOH spokesperson Albert Domingo told the Senate Committee on Health and Demography on Tuesday, June 3, that the two agencies do not object to reducing the PhilHealth premium rate to 3.5% from the current 5%.

Plans to cut the contribution rate of the state health insurer are included in proposed amendments to the Universal Health Care Act in both chambers of Congress.

The Senate’s version of the bill, which was passed on third and final reading in August last year, proposed reducing premium rates to 3.25%. Meanwhile, the House of Representatives’ version passed on third and final reading in February seeks to cut the contributions to 3.5%.

The House’s version also contains provisions allowing Congress to review the premium rates annually and decide whether or not this should be raised. This decision will be based on actuarial studies that will also be reviewed by a non-government and independent body.

“May panahon para magpapakitang gilas ang PhilHealth, at nakikita naman natin na nagpapakita ang gilas, para mapatunayan sa ating sambayanan kung karapat dapat nga ba na itaas ang premium rate,” Domingo said.

(PhilHealth will have time to show, as they have been, to the Filipino people that the premium rate deserves to be increased.)

The Finance Department earlier expressed its opposition to the rate cut, suggesting that PhilHealth improve on its benefit packages instead.

Economic advocacy group Action for Economic Reforms (AER) also said on Monday, June 2, that it had reached out to the Senate to defer passage of the bill. The group expressed concern that a rate cut could be “detrimental” to the country’s health system.

“AER understands that Congress’ proposal of a decrease in premium rates stems from an assumption that PhilHealth has excess funds. However, from the oral arguments presented during the Supreme Court hearing on the transfer of PhilHealth funds to the national government, it was established that PhilHealth’s insurance contract liabilities exceeded its reserve fund,” the group wrote in a statement.

AER also acknowledged that PhilHealth’s new leadership was in the process of reviewing its policies and increasing its benefit packages.

PhilHealth’s President and Chief Executive Officer Edwin Mercado said that it can still sustain the state health insurer’s activities for the next two years based on projected funding from sin tax collections and estimated rollout of benefit packages.

Domingo added that this is the very reason why the DOH and PhilHealth oppose reducing current sin tax rates. (READ: Advocates urge Senate to junk ‘Sin Tax Sabotage’ bill)

“Sana ma maintain natin ang rate na iyon para hindi po tayo mabawasan ng revenue, at dapat din ‘yung buwis sa vape ay taasan. Dahil doon po manggagaling, kung sakali, ‘yung pambayad para sa benepisyo,” he said.

(Hopefully, we can maintain those [excise tax] rates [on tobacco products] so we don’t lose any revenue, and we should also raise taxes on vapes. If ever, this is where we will get the money for the benefit [packages].)

Lawmakers from both the House and Senate will meet for a bicameral conference next week to reconcile the two versions of the measure.

Amendments to the Universal Health Care Act are among the priority bills of the Marcos Jr. administration. – Rappler.com