Metro Manila, Philippines – The government health insurer has reversed its earlier position and is now calling for lower contribution among its members.
Emmanuel Ledesma Jr., Philippine Health Insurance Corporation (PhilHealth) president and CEO, made the statement during Tuesday’s Senate hearing that focused on the transfer of nearly P90 billion in unused funds to the national treasury.
Senator Christopher “Bong” Go, chairman of the Senate Committee on Health, lamented the sheer amount of money shelled out by PhilHealth members – who contribute 5% of their monthly salary – when there were idle funds.
Finance Secretary Ralph Recto maintained that reverting the funds was legal, while Ledesma stressed that PhilHealth still has a P500-billion chest fund despite the transfer. Go was unsatisfied.
“Ang laki pa pala ng pondo ninyo tapos bunot sila nang bunot. P1,200 ang sakit noon ah,” Go said, citing as example the contribution rate of a member with a P24,000 monthly salary.
“Tapos makikita nila may P500 billion pa ang PhilHealth,” he added.
[Translation: Your fund is actually quite large, yet they keep contributing money to it. P1,200 is painful, you know. And then they’ll see that PhilHealth still has P500 billion.]
Ledesma said he “agrees with [Go] 100%” on the need to bring down the contribution rate.
“In fact, we at PhilHealth upper management, we will recommend to President Marcos that we bring down the premium rates,” Ledesma said.
He said he would make the recommendation as soon as possible, adding that he would convene his team the same afternoon.
In a text message to NewsWatch Plus, Senator JV Ejercito, sponsor and author of the Universal Health Care (UHC) Act, said lowering the PhilHealth contribution rate needs legislation.
A bill amending the UHC law is at the period of interpellation in the Senate.
“Hopefully we can pass this before budget hearings,” Ejercito said.
“When the UHC was being drafted and passed, circumstances were a lot different. Nobody foresaw it coming,” he added.
In the meantime, Ejercito said President Ferdinand Marcos, Jr. can order a suspension of the 5% contribution rate which took effect early this year.
In March, Ledesma said the hike was necessary to improve benefit packages.
