The Philippine Health Insurance Corporation (PhilHealth) faced significant scrutiny last year over its planned premium rate hikes, leading to legislative interventions and public debate.
Signed into law in 2019, the Universal Health Care (UHC) Act mandates PhilHealth to incrementally increase premium contributions to ensure sustainable funding for universal health coverage. The law stipulates annual increases until the rate reaches 5% by 2024.
In January 2024, PhilHealth implemented a premium rate increase to 5% of a member’s monthly salary, as directed by the UHC Act. This adjustment raised concerns among various sectors, particularly given the economic challenges faced by many Filipinos. The rate hike was met with strong public backlash, with critics arguing that the increases failed to translate into improved members’ services. Social media and public forums were filled with complaints about delayed claims and inadequate benefits.
The rate hike prompted reactions from both the public and lawmakers. Senator Christopher “Bong” Go expressed support for suspending the premium increase, aligning with sentiments from Department of Health (DOH) Secretary Teodoro J. Herbosa, who urged President Ferdinand R. Marcos Jr. to consider the suspension. Senator Risa Hontiveros echoed these sentiments, emphasizing the financial strain on ordinary Filipinos.
House Deputy Minority Leader Stella Quimbo also criticized the rate hike, calling for transparency in PhilHealth’s utilization of funds. Quimbo argued that the agency must address longstanding inefficiencies before imposing additional financial burdens on members.
In response to these concerns, the Senate acted swiftly. Lawmakers passed Senate Resolution No. 482, urging PhilHealth to defer the premium hike. The resolution, sponsored by Senate President Juan Miguel Zubiri and supported by several senators, emphasized the need to alleviate the financial burden on Filipinos during challenging times.
PhilHealth, acknowledging the appeals and legislative actions, stated that it would not proceed with the planned premium rate increase. Considering its substantial reserve funds, the agency also expressed openness to adjusting contribution rates. PhilHealth President and CEO Emmanuel Ledesma Jr. assured members that the agency remains financially robust and capable of meeting medical needs despite these adjustments.
This series of events underscores the complexities of balancing financial sustainability with the economic realities faced by contributors. It highlights the importance of collaboration between the government, lawmakers, and PhilHealth to ensure the equitable delivery of universal health care for all Filipinos
