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PhilHealth agrees with JV Ejercito: Increase subsidy for indirect contributors

August 15, 2024

The chief of the Philippine Health Insurance Corporation (PhilHealth) agreed with Senator Joseph Victor "JV" Ejercito's proposal to increase subsidies for indirect contributors until the country's health situation normalizes.

Ejercito, who serves as vice chairperson of the Senate Committee on Health and Demography, said this will ease the burden of premium hikes on direct PhilHealth contributors, such as regular employees and overseas Filipino workers.

“We have to adapt to the situation as well. We are in a crisis situation. Kailangang makabawi muna siguro ang lahat,” he said.

As principal sponsor of the UHC Law during his first term in the Senate, Ejercito recently filed Senate No. 160, which seeks to amend the said measure by fixing the income ceiling for premium contributions at P40,000 as the basis for premium rates, as well as by increasing the national government’s subsidy for indirect contributors.

Under the UHC Law, direct contributors include regular employees, self-earning professional practitioners, migrant workers, qualified dependents, and lifetime members.

Meanwhile, indirect contributors refer to individuals who do not fall under any of the said categories of direct contributors and whose premiums shall be subsidized by the national government.

“Ang proposal natin ngayon, kasi yung income ceiling natin tumataas, yung based sa law, ang naisip ko na ngayon, itaas natin yung sa indirect contributors, for example, yung subsidy ng national government for indirect contributors,” he said.

“‘Tas yung sa direct contributors – these are the employees and OFWs – we can base it on the income floor na tuloy-tuloy (na) P10,000. Siguro, itaas nalang natin later on pag nakabawi na. And (ipatupad ang) income ceiling na P40,000,” he added.

PhilHealth officer-in-charge Atty. Eli Dino Santos said he personally agreed with Ejercito’s proposal.

“We subscribe to that, Sir, to that proposal. In fact, a while ago, we discussed about the income ceiling. Personally, I would rather that the income ceiling be increased,” he said.

Initially, the current premium scheme was intended to help PhilHealth finance a variety of medical services that are to be made more accessible under the UHC Law.

However, the lawmaker from San Juan City said the rates stated in the UHC Law were based on pre-pandemic information.

“Naiintindihan naman natin ang PhilHealth kasi kailangan niyo ring makakolekta to finance yung mga assistance. Pero everything then was normal, when the law was being drafted. So, yung mga numbers then ay based doon sa time na wala pa yung pandemic,” Ejercito said.

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