Marcos on PhilHealth rate hike: It's a cost-benefit analysis

President Ferdinand “Bongbong” Marcos Jr. on Wednesday said determining the premium rate increase of Philippine Health Insurance Corporation (PhilHealth) should depend on a cost-benefit analysis.

In an ambush interview, Marcos was asked if he really has no objections with the PhilHealth contribution hike.

“What we are trying to determine is that if we are going to increase the contribution from 4% to 5%, ano'ng bawi (what will be gained)? It’s really a cost-benefit analysis and Philhealth has been expanding its services and trying to reach more people and trying to engage more people. And ‘yung for example, ‘yung mga pinagbabayad sa (And for example, the payment for) like the dialysis, increased almost three times, the payment out for even catastrophic like cancer has increased by tenfold,” Marcos said.

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

“So kung meron benepisyo naman (If it is beneficial), then if we can justify the increase, then we’ll do it. But if we cannot, then we won’t. Ganu'n lang ka-simple ‘yun (That's how simple it is). It’s just a very straight forward cost-benefit analysis. We’re, it’s still under study but we’ll come to a conclusion very very soon,” he said.

PhilHealth president and CEO Emmanuel Ledesma Jr. said Friday that the increase in contributions will not be suspended as Marcos himself did not oppose the hike.

At a press briefing in Pasig City, Ledesma said the state health insurer received a letter from the Office of the President, through Executive Secretary Lucas Bersamin, that “they pose no objection to the scheduled increase which was implemented on January 1st” after a “very thorough study.”

The PhilHealth chief said the agency sought clarification from the President following Health Secretary Ted Herbosa's appeal to suspend the implementation of the increase.

“It was clearly stated by PBBM that the premium increase will continue,” Ledesma said.

The Presidential Communications Office (PCO), meanwhile, said Friday that Marcos is still reviewing the matter. 

Health Secretary Ted Herbosa said last month that he has asked Marcos to suspend the implementation of PhilHealth's premium rate increase in 2024.

“My position is that, I think PhilHealth has enough money to actually continue to give benefits. It will not be hurt by delaying the increase in premium. I need to see good actuarials on this one. You need to have a science-based policy," Herbosa said.

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/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 Universal Health Care (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. —KG, GMA Integrated News