Employers ask Marcos to defer PhilHealth contribution hike to 2025

Employers are appealing to President Ferdinand Marcos Jr. to defer the increase in contribution or premium rate of Philippine Health Insurance Corporation (PhilHealth) members, which has been in effect since last month.

In a letter to the President, copies of which were sent to the media on Wednesday, employers and business groups said, “[W]e humbly propose that PhilHealth momentarily redirect its focus on service enhancement, delaying the hike until 2025.”

Signatories to the letter are Employers Confederation of the Philippines chairman Edgardo Lacson, Philippine Chamber of Commerce and Industry president Enunina Mangio, and Philippines Exporters Confederation president Sergio Ortiz-Luis Jr.

“This temporary reprieve would provide much-needed relief to the majority of vulnerable micro and small establishments, as well as Filipino workers who find it challenging to comply with the proposed premium hike, especially with the rising prices of commodities,” the employers groups said.

On Wednesday morning, Marcos said that he is still studying the premium rate hike from 4% to 5%, which took effect this year, through a cost-benefit analysis perspective. 

The President said the government would come up with the decision very soon.

Last Friday, PhilHealth president and CEO Emmanuel Ledesma Jr. said the increase in premium rate will not be suspended as Marcos did not oppose it.

In particular, Ledesma cited a letter from the Office of the President, through Executive Secretary Lucas Bersamin, stating that “they pose no objection to the scheduled increase which was implemented on January 1st” after a “very thorough study.”

Shortly after the PhilHealth chief’s announcement, the Palace made a clarification that Marcos is still reviewing the matter.

With this, the employer groups said they remain “hopeful for positive developments under your esteemed leadership.”

The groups expressed support for Health Secretary Teodoro Herbosa’s call, who also serves as the Chairperson of the agency, to suspend the 5% premium increase in 2024. 

“The secretary has stated that the proposed action would not significantly impact PhilHealth’s financial standing, considering that the agency has sufficient funds to continue providing benefits and services to its members,” the groups said.

“Notably, PhilHealth president and chief executive officer Emmanuel Ledesma has affirmed this claim, stating that even if the said proposal is implemented, PhilHealth’s fund will not be depleted,” the groups added.

To recall, Ledesma said last month that the state health insurer’s plan to expand the coverage of its benefits packages this year will still push through even if Marcos would suspend the mandated increase in premium rates as scheduled under the Universal Health Care (UHC) law, noting that the state-run firm “will be fine” despite an expected foregone revenue of P17 billion should the premium hike be delayed. 

Effective January 1, the premium rate went up to 5% while the monthly basic salary ceiling will increase to P100,000 and the minimum remains at P10,000.

To illustrate, if a worker earns P10,000 a month, his or her monthly contribution to PhilHealth should amount to P500 effective this year. The premium contribution shall be equally shared between the employee and employer.

Last year, the premium rate was supposed to increase to 4.5%, while the monthly basic salary ceiling should have been P90,000. However, it was suspended by Marcos due to socioeconomic challenges caused by the pandemic.

The scheduled increase in PhilHealth rates is in accordance with the UHC Law which was signed in 2019 by then-President Rodrigo Duterte. The law mandates gradual hikes in the PhilHealth contribution rate until it reaches 5% in 2024.

“Despite being PhilHealth members, individuals still shoulder a significant portion of hospital expenses themselves,” the employers groups said.

“This situation particularly impacts vulnerable groups, including the elderly, women, and those in rural and impoverished areas, who disproportionately shoulder the burden due to limitations in national health insurance coverage,” the groups said. —VAL, GMA Integrated News