SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENATE 
) 
) 
) 
~£rmtl' 
tOUI";r jjf H}t ~rtT9htr'l 
'15 
SEP -B P 1 :56 
S. No. 
2944 
REf'i::!'Vim H":_~~ 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO ENHANCE CITIZEN AWARENESS OF INSURANCE INFORMATION AND 
SERVICES BY ESTABLISHING STANDARDS IN THE LANGUAGE EMPLOYED 
IN INSURANCE DOCUMENTS 
EXPLANATORY NOTE 
The Constitution, Article 2, Section 15 provides that: 
The State shall protect and promote the right to health of the people 
and instill health consciousness among them. 
A good health care system is anchored on a sound insurance system. Reasonable 
insurance coverage means less cost for the government in terms of disease prevention and 
treatment. There are many insurers who afford reasonable coverage at affordable cost to 
most of our countrymen. However, our country has yet to establish a meaningful 
insurance system as most expenditures are still paid out of pocket or paid for by the 
government. In 2007, expenditures on health services were paid for by the government 
(33%) and out-of-pocket payments (57.00%) and total health expenditure per capita was 
US$68. Government funding is a share from general taxation. Several earmarked taxes 
are also directed to PhilHealth; these include: value added tax, sin tax, stamp tax and 
excise tax. A small proportion of funding comes from private insurance, HMOs, 
employment-based plans and private schools. Foreign assisted projects comprise only 
1.7% of health finances. 1 
1 WHO and DOH: Health Service Delivery Profile Philippines 2012. URL 
<http://www.wpro.who.intlhealth_services/service_delivery--.profile--.philippines.pdf> 
1 


The lack of faith in the insurance sector can be attributed to several factors. One is 
the public's insufficient understanding of the health insurance industry. It can be 
attributed to the legalese and technical terms employed by the insurance companies in 
marketing and crafting the health insurance polices leading to failure to communicate the 
benefits of having health insurance. As a result, the insurance system is generally treated 
with distrust. 
This bill seeks to mandate health insurance providers to use plain language in 
preparing insurance documents. By doing so, we will be able to democratize the 
understanding of such documents and thereby establish faith in the health insurance 
system.2 
~\., ~ 
___ )A.; 
MIRlAM DEF~SOR SANTIloo 
~ 
2 This bill was originally filed during the Fourteenth Congress, Third Regular Session. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Third Regular Session 
SENAJli. 4 
S. No. 
~tJ 4 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
.. 
!:\lnuxh' 
iJ1}ih;t t)f Hr~ ~r(ft'1ar~ 
'15 
SEP -8 P 1 :56 
\WCE1VEIJ BY:-& - , 
TO ENHANCE CITIZEN AWARENESS OF INSURANCE INFORMATION AND 
SERVICES BY ESTABLISHING STANDARDS IN THE LANGUAGE EMPLOYED 
IN INSURANCE DOCUMENTS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Plain Language in 
2 
Health Insurance Act." 
3 
SECTION 2. Purpose. - The purpose of this Act is to improve the effectiveness 
4 
and accountability of health insurance issuers, health plans, and govermnent health care 
5 
programs by promoting clear communication that the public can understand and use. 
6 
SECTION 3. Definition of Terms. - For purposes of this Act the term-
7 
A. "Covered document" means any publicly distributed document issued by a 
8 
health insurance issuer, health plan, or government health care program; 
9 
B. "Plain language" means language that the intended audience can readily 
10 
understand and use because that language is clear, concise, well organized, 
11 
and follows other best practices of plain language writing; and 
12 
C. "Secretary" means the Secretary of Health, unless otherwise indicated. 
13 
SECTION 4. Requirement to Use Plain Language in New Documents. - Not later 
14 
than one year after the date of effectivity of this Act, all health insurance issuer, health 
1 


1 
plan provider, and government agencies implementing health care programs shall use 
2 
plain language in any covered document of the plan issued or substantially revised. 
3 
SECTION 5. Guidelines. - The Secretary of Health, not later than six months after 
4 
date of effectivity of this Act, shall develop guidelines on implementing the requirements 
5 
of Section 4 of this Act. The Secretary shall issue such guidelines to health insurance 
6 
issuers, health plans providers, and government agencies implementing health care 
7 
programs. 
8 
SECTION 6. Corrective Action Plan. - If the Secretary finds that a health 
9 
insurance issuer or health plan provider is in violation of Section 4 of this Act, the 
10 
Secretary shall issue an order requiring the issuer or plan to submit a corrective action 
11 
plan within 90 days for review and approval by the Secretary. 
12 
SECTION 7. Penalties. - Any health insurance issuer or health plan provider that 
13 
violates an order under Section 6 or any provision of a corrective action plan approved by 
14 
the Secretary pursuant to the same shall be liable for a penalty in an amount not to exceed 
15 
One Hundred Thousand Pesos (1'100,000.00) for each such violation. 
16 
SECTION 8. Government Health Care Programs. - The Secretary, in consultation 
17 
with other appropriate departments and agencies, shall establish mechanisms to ensure 
18 
that government health care programs meet the requirements of Section 4. 
19 
SECTION 9. Initial Report to Congress. - Not later than six months after the 
20 
effectivity date of this Act, the Secretary shall submit to the appropriate committees in 
21 
the Senate and the House of Representatives a report that describes how the agency 
22 
intends to meet the following objectives: 
23 
A. Communicating the requirements of this Act to health insurance issuers, health 
24 
plans, and government health c~e prpgrllms; 
2 


· . 
1 
B. Training government health care program employees to write m plain 
2 
language; 
3 
C. Meeting the requirement under Section 4; 
4 
D. Ensuring ongoing compliance with the requirements of this Act; 
5 
E. Enforcing the requirements of this Act pursuant to Section 6; and 
6 
F. Designating a senior official to be responsible for implementing the 
7 
requirements of this Act. 
8 
SECTION 10. Annual Reports. 
~ The Secretary shall submit reports on 
9 
compliance with this Act to the appropriate committees in the Senate and the House of 
10 
Representatives annually for the first two years after the date of effectivity of this Act; 
11 
and once every three years thereafter. 
12 
SECTION 1 L Appropriations. 
~ The amount necessary for the initial 
13 
implementation of this Act shall be charged against the appropriations of the Department 
14 
of Health under the current General Appropriations Act. Thereafter, such sum as may be 
15 
necessary for its full implementation shall be included in the annual General 
16 
Appropriations Act as a distinct and separate item. 
17 
SECTION 12. Separability Clause. ~ If any provision of this Act is held invalid or 
18 
unconstitutional, the same shall not affect the validity and effectivity of the other 
19 
provisions hereof. 
20 
SECTION 13. Repealing Clause. ~ Any law, presidential decree or issuance, 
21 
executive order, letter of instruction, administrative order, rule or regulation contrary to 
22 
or is inconsistent with the provision of this Act is hereby repealed, modified, or amended 
23 
accordingly. 
3 


1 
SECTION 14. Effectivity Clause. - This Act shall take effect fifteen (15) days 
2 
after its pUblication in the Official Gazette or in two (2) newspapers of general 
3 
circulation. 
Approved, 
lapm28August2015 
4