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Contribution hike starting June is retroactively effective in January —PhilHealth

Apart from higher contributions to be deducted from an employees’ salary starting June, contributors to the Philippine Health Insurance Corp. (PhilHealth) would also have to pay the 1% additional premium for the months of January to May as the new premium rate is retroactive, the state health insurer announced.

In its Advisory No. 2022-0010, PhilHealth said members and employers who have already paid their contributions at 3% during the months prior to the scheduled premium rate hike from 3% to 4% starting next month “are advised to generate the corresponding Statement of Premium Account for the paid periods so they can settle the 1% differential payments/remittances until December 31, 2022.”

The state health insurer explained that the premium rate of 4% for 2022 is retroactively effective since January this year, although the new contribution rate is only taking effect in June.

The increase in premium is under the Universal Health Care law, which mandates that premium rate shall increase by increments of 0.5% every year starting from 3% in 2020 until it reaches 5%.

The premium contribution was supposed to increase from 3% to 3.5% in January 2021 but was deferred due to the COVID-19 pandemic.

President Rodrigo Duterte heeded calls to defer the scheduled hike of PhilHealth members’ contribution in 2021 amid the health crisis.

The 4% premium rate means that those earning P10,000 and below would have to pay P400.00 monthly contribution to PhilHealth.

Those earning over P10,000 but lower than P80,000 need to pay a higher monthly premium ranging between P400 and P3,200 while those earning over P80,000 would have to pay a flat rate of P3,200.

The monthly contribution to the social health insurance coverage is equally shared by the employee and employer, except for “kasambahays” or house-helpers which is solely shouldered by their household employers.

Duterte in February 2019 signed the UHC to guarantee all Filipinos equal access to quality and affordable goods and services in healthcare.—AOL, GMA News