The Philippine Health Insurance Corporation (PhilHealth) still has to account for the “wasted or stolen” P15 billion in funds, but already, the government-owned corporation is requiring its members to pay higher monthly contributions.
On Jan. 3, Philhealth announced that it will push through with its scheduled 2021 rate hike as mandated by Republic Act No. 11223 or the Universal Health Care (UHC) Act. According to this law, monthly contributions are set to increase in increments of 0.5 percent annually. This begins in 2021 and will continue until the five percent hike limit is reached in 2025. Last year, membership contribution rates were at three percent of monthly salaries.
With the new rate hike, Philhealth members with monthly salaries of P10,000 and below will now pay P350 per month to the state insurer. Meanwhile, those earning P70,000 and above are expected to pay a fixed contribution of P2,450 a month. People earning P10,000 to P69,999.99 are expected to contribute 3.5 percent of their salaries, ranging from P350 to P2,449.99 monthly.
In an interview, Philhealth spokesperson Rey Balena said the increase in monthly rates will be used to accommodate additional medical benefits and subsidies, as well as reforms under the UHC law. “This will sustain and expand current benefits that are enjoyed by all. The aim of the UHC law is for benefits not to become stagnant,” Balena said.
Despite also being embroiled in his own department’s controversies himself, Health Secretary Francisco Duque III backed the agency’s increase in contribution rates among its members.
Last year, a Philhealth anti-fraud legal officer stirred controversy after he cited widespread corruption in the agency as the reason for his resignation. Although the agency had denied the allegation, the Palace ordered an investigation, with President Duterte approving the filing of administrative and criminal complaints against involved agency officials. This included former PhilHealth President and CEO Ricardo Morales, who stepped down in Aug. 2020 due to health reasons after attending congressional hearings on the issue.
[READ: PhilHealth’s corruption controversy continues as Palace orders investigation]
The mandatory increase in member contributions amid the unresolved question about the P15 billion missing Philhealth funds riled several lawmakers. Senator Francis “Kiko” Pangilinan noted that the increase is ill-timed, especially since the pandemic has driven people to struggle even more to keep up with the cost of living.
Public accounts committee chairman Rep. Mike Defensor said that the agency should first recover its previous losses to fraud before implementing a rate hike in contributions. “My appeal to PhilHealth is to defer or delay the increase by at least six months to give time to Congress to pass an amendatory bill and other measures reforming the agency to make it more efficient and effective, and to lessen corruption, which results in billions in financial losses every year,” said Defensor.