PhilHealth fully understands the sentiments of our OFWs regarding the increase in premiums. We have explored several possibilities to cushion the impact of the increase through flexible payment terms that are embodied in the recently published Circular. The increased premium rates from 2.75% to 3% in 2020 is in accordance with specific provisions of Republic Act 11223 otherwise known as the Universal Health Care Act of 2019. These premium rates were announced last year in PhilHealth Circular No. 2019-0009 published in Nov. 23, 2019 entitled 'Premium Contribution Schedule in the National Health Insurance Program (NHIP)' and further clarified by the recently published PhilHealth Circular No. 2020-0014.
The purpose of the Universal Health Care Act, as in other societies with the same program, is to provide affordable and adequate healthcare to all Filipinos. Such a program requires funding collected through premium contributions. In 2019, forty-four percent (44%) of the premiums were subsidized by the national government while the balance was collected from individual members and their employers, where OFWs are counted. Benefits-wise, 36% of beneficiaries were from the informal and private sector while 37% were accounted for from the indigents and senior citizens whose premiums were paid by the national government.
In the past some 10 to 12 million claims per year were processed, ranging from natural childbirth to kidney transplants. Last year, with a collection from OFWs amounting to P 1.02 Billion (comprising 0.7% of premiums from total collections), OFWs claimed P 1.7 Billion in benefits with 69% of claims attributed to their dependents in the country while 31% was claimed by overseas OFWs. Under the UHC Act, benefit coverage is planned to be increased and expanded so that more Filipinos can be served better. This is the fundamental basis for the premium increase. These ambitious health goals must be supported by adequate funding collected through increased premium rates.
Year 1 of UHC coincided with the unprecedented coronavirus disease 2019 pandemic. Even wealthy nations - nations with highly vaunted health systems - are struggling to protect their citizens. The Philippines has not been spared from this scourge. To provide financial protection to Filipinos, PhilHealth has rolled out a P30 billion CoViD-19 response fund - the biggest of any agency - which is being prepositioned with some 5,000 accredited health care facilities nationwide.
Recognizing that everyone is cash-strapped during these difficult times, and in the spirit of the recently passed R. A. 11469 or the Bayanihan We Heal As One Law which is government's response to the CoViD-19 pandemic, PhilHealth has adopted a flexible payment scheme which will allow OFWs - and all other directly paying self-employed members - to pay their contributions within the year. As an agency of government, sensitive to the welfare and well-being of all Filipinos, PhilHealth commits to continue exploring means to soften and alleviate the impact of premium rate increase, but it cannot change the Law.
