House okays reduction of PhilHealth contribution rate to 3.5%

The House of Representatives on Wednesday approved a bill reducing the Philippine Health Insurance Corporation (PhilHealth) premium contribution rate to 3.5% from 5%.

House Bill 11357 or An Act Strengthening the Philippine Healthcare System to Achieve Efficiency and Equity, and to Improve Public Health Emergency Preparedness was approved via viva voce on second reading.

“This bill will strengthen the Philippine healthcare system to improve efficiency and equity, and to build resilience moving forward, learning from experiences during the COVID-19 pandemic,” the committee report on the measure read.

A priority measure of the Legislative Executive Development Advisory Council, the bill amends Republic Act No. 11223 or the Universal Health Care (UHC) Act.

Under the measure, the 3.5% PhilHealth premium contribution rates by its members will only be adjusted based on actuarial studies that will be evaluated by a non-government, impartial, and credible independent body.

Likewise, the said adjustment of premium contribution will be subject to the approval of Congress when it deliberates on the proposed national budget.

In addition, the bill provides that Overseas Filipino Workers will not be required to pay their PhilHealth contribution since 50% of it will be shouldered by their employer while the other 50% will be paid by the Philippine government.

The bill also states that PhilHealth’s administrative expenses, which include salaries for its personnel, should only account for 7.5% of its total expenditure for its members’ benefits.

Under the current law, PhilHealth’s administrative expense accounts for 7.5% of its total collected PhilHealth premium contribution.

Health Secretary Ted Herbosa, in a separate statement, thanked Congress for the approval of the measure.

Herbosa particularly gave credit to acting House appropriations panel chairperson Stella Quimbo for defending the provision of the bill mandating PhilHealth to allocate its administrative expenses, including the salary of its personnel, based on the benefits paid rather than the amount of PhilHealth premium contributions collected.

“We expect this measure to be enacted into a law as soon as possible,” he said.

The bill also allows component cities and municipalities to set up a Special Health Fund under the guidance of the Department of Health, the Department of Budget and Management and UHC Coordinating Council (UHC-CC).

The UHC-CC will be composed of various relevant government agencies and co-chaired by the Secretary of Health and Secretary of the Interior and Local Government.

The Senate already approved its version of the measure under Senate Bill 2620 on third and final reading last August 2024. —LDF, GMA Integrated News