Metro Manila (CNN Philippines, January 21) — Two committees in the House of Representatives approved on Thursday measures granting the President the power to suspend scheduled contribution hikes in times of national emergencies.
The Committee on Health approved House Bill No. 8316, or an act granting the country’s chief executive the power to suspend scheduled contribution increases of Philippine Health Insurance Corporation, amending section 10 of the Republic Act No. 11223, or the Universal Health Care Law.
Meanwhile, the Committee on Government Enterprises and Privatization approved HB No. 8317 that gives the President the authority to suspend increases in contribution to the Social Security System, which amends section 4 of RA No. 11199, or the Social Security Act of 2018.
Both bills were filed by House Speaker Lord Allan Velasco and will now be transmitted to the plenary for second and third reading approval.
Similar bills of the same purpose were also filed and are pending in the committee level in the Senate.
In a position paper, PhilHealth President and CEO Dante Gierran said they fully support the measure “provided that the subsequent scheduled increases in the premium contributions shall be adjusted to fall on the years following the lifting of the suspension.”
However, Marikina Representative Stella Quimbo argued that existing packages must not be affected since the measure only defers collection of higher premiums, and does not mandate payment of lower contributions.
Baguio City Representative Mark Go also claimed that PhilHealth is bloating its actuarial figures to stop the deferment. He said the ₱12-billion lost collection that the agency computed due to the suspension seemed to be bloated since the supposed increase this year was just 0.5%.
PhilHealth refused to comment on Go’s statement.
Under the law, PhilHealth members must contribute 3.5% of their monthly income to the agency starting January 2021, which will rise until it reaches 5% by 2025. However, its implementation was postponed in line with President Rodrigo Duterte’s directive.
During the inquiry, SSS President and CEO Aurora Ignacio warned the agency may lose around ₱15 billion if the suspension will push through. The trillions of unpaid liabilities of SSS will also go up unless their collection increases this year, she added.
The state-run pension fund for private sector workers implemented its adjustment this year, increasing its member contribution to 13% from 12%.
CNN Philippines correspondents Gerg Cahiles and Xianne Arcangel contributed to this report.
“Implementation of comprehensive outpatient benefits will also be deferred when there is no corresponding premium increase being implemented,” he added.
During the hearing, Nerissa Santiago, Acting Executive Vice President and COO of PhilHealth, also pointed out that some programs will be affected with the deferment. For one, the implementation of their out-patient program “Konsulta” in some areas of the country will be limited, or other benefit packages will be recalibrated.
