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Amid COVID-19, PhilHealth contribution rate to increase in 2021

Members of the Philippine Health Insurance Corp. (PhilHealth) will be greeted with higher premiums next year as the state health insurer proceeds with the scheduled contribution rate adjustment for 2021.

In a statement, the PhilHealth said the implementation of contribution rate and adjustments in income ceiling for next year was to ensure “sufficient funding for the  healthcare benefits of its 110 million members as mandated by the Republic Act No. 11223 or the UniversalHealth Care (UHC) Law.”

“The premium adjustment is provided for in Section 10 of the UHC Law and  its implementing rules and regulation, the guidelines of which are contained in Circular 2020-005 published by PhilHealth on March 5, 2020,” the state insurer said.

For next year, the premium rate is set to increase to 3.50% of monthly basic salary from the current 3.00%.

With this, those earning below P10,000 shall have a fixed contribution of P350 per month while those earning P70,000 monthly or higher is fixed at P2.450 a month.

“Contributors of employed members (including Kasambahays) shall be equally shared shared between employees and employers, while those of self-paying members, professional practitioners and land-based migrant workers and other direct contributors with no employee-employer relationship are computed straight based on their monthly earnings and paid wholly by the member,” PhilHealth said.

The state insurer said it fully recognized the current pandemic situation that is taking its toll on many businesses and livelihood of many Filipinos, however, it emphasized that “it is bound to implement the UHC Law which has been the beacon and source of hope for the country that is aiming for better healthcare services even as it battles the coronavirus disease 2019.”

Under the UHC Law, premium rate shall increase to increments of 0.5% every year, starting 2021 until it reaches the 5% limit in 2025.

The PhilHealth said that the law emphasized  the importance of members’ social health insurance contributions to provide necessary funding for various reforms under the UHC which are being availed by Filipinos such as but not limited to the following:

  • Automatic membership of all Filipinos into the National Health Insurance Program
  • Immediate eligibility of all Filipinos to PhilHealth benefits 
  • Assignment of  every Filipino to  a primary care provider
  • No  copayment or no Balance Billing for confinements in basic or ward accommodations
  • Lifetime PhilHealth coverage

“These reforms and those that  are still in the pipeline  as mandated by the UHC Law are for the benefit of all and sundry, regardless of their  station in life,” the PhilHealth said. -NB, GMA News