FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
Introduced by Senator JUAN MIGUEL F. ZUBIRI 
EXPLANATORY NOTE 
The quality of health care has not significantly improved all these past years as 
the costs continue to soar making appropriate care beyond the reach of ordinary 
people. It is also undeniable that the Filipino masses, especially those who live in the 
rural areas and, more particularly, those in isolated communities and far-flung areas, 
receive far less and lower quality health service. Many continue to die without availing of 
medical services and even without seeing a doctor. 
These problems are even made worse by the continuing exodus of doctors and 
nurses in search for green pastures abroad, and the continuing inability and of local 
government units to provide adequate budgetary assistance to medical facilities long 
devolved by the national government. 
The decentralized primary health care system has remained weak and 
unresponsive to the health needs of the people and direly awaits the needed infusion of 
support and assistance from no less than Congress which can no longer keep its eyes 
closed to the damaging dysfunctions and disarray that the policy of devolution and 
decentralization has not unexpectedly wrought in the lives of the impoverished 
populace. 
This proposed remedial legislation seeks to contribute effective strategies in 
solving the worsening national health situation by introducing vital amendments in the 
National Health Insurance Law that, among others, will help address the drain of 
doctors and other medical personnel serving health care providers in the countryside, 
as well as their lack of specialized trainings and needed exposures to advance their 
competence and expertise. 
It is a very vital contribution that PHILHEALTH must welcome, and in fact, the 
wisest investment it could ably make as compared to its investments in governmental 
bonds and securities and corporate stocks which always run the risks of loss and 
mismanagement. 
This legislative initiative also aims to provide financial assistance to health care 
providers that cater to numerous indigents and residents of impoverished barangays 
and municipalities of the archipelago. 


In view of the urgency to address the fast worsening problems and grave 
challenges in public health care, it is earnestly urged that this bill be certified as an 
urgent administrative measure and a priority legislation of Congress to ensure its swift 
deliberation and passage in our legislative anvils. 


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FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES ) 
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First Regular Session 
) 
SENATE 
S.No. 1983 
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Introduced by Senator JUAN MlGUEL F. ZUBlRl 
AN ACT 
AMENDING REPUBLIC ACT NO. 7875, OTHERWISE KNOWN AS AN ACT 
INSTITUTING A NATIONAL HEALTH INSURANCE PROGRAM FOR ALL FILIPINOS 
AND ESTABLISHING THE PHILIPPINE HEALTH INSURANCE CORPORATION FOR 
THE PURPOSE, TO EXTEND FINANCIAL ASSISTANCE TO HEALTH CARE 
PROVIDERS, PROMOTE THE ADVANCEMENT OF MEDICAL PERSONNEL AND 
FOR OTHER PURPOSES 
Be it enacted by the Senafe and the House of Representatives of the Philippines in 
Congress assembled: 
Section 1. Section 26 of Republic Act No. 7875 is hereby amended to read as 
follows: 
"SECTION 
26. 
Financial 
Management.-The 
use, 
disposition, investment, disbursement, administration and 
management of the National Health Insurance Fund, 
including any subsidy, grant or donation received for 
program operations shall be governed by resolution of the 
Board of Directors of the Corporation, subject to the 
following limitations: 
a) 
x 
X 
X 
b) 
x 
X 
X 
c) 
AT LEAST TEN (IO) PERCENT OF ITS ANNUAL 
FUND SHALL BE ALLOCATED FOR LOANS AND/OR 
FINANCIAL ASSISTANCE TO ALL HEALTH CARE 
PROW D ERS . 
Section 2. Section 27 of Republic Act No. 7875 is hereby amended to read as 
follows: 
"SECTION 27. Reserve Fund.---The Corporation shall set 
aside a portion of its accumulated revenues not needed to 
meet the cost of the current year's expenditures as reserve 
funds: provided, that THIRTY (30%) PERCENT OF THIS 
TOTAL AMOUNT 
SHALL 
BE INVESTED IN THE 
TRAININGS, 
STUDIES 
OR 
EDUCATIONAL 
ADVANCEMENT OF MEDICAL PERSONNEL SERVING 
HEALTH CARE PROVIDERS IN 4'h, 5'h AND 6'h CLASS 
MUNICIPALITIES, x 
x x. 
Section 3. The Board, in consultation with the Committee on Health of the 
Senate and the House of Representatives and Department of Health (DOH) shall 
formulate the rules and regulations necessary for the implementation of this Act within 
thirty (30) days from its approval. 
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Section 4. Information Campaign.-A 
three-month intensive public information 
campaign shall be undertaken by the Department of Health and the Philippine Health 
Insurance Corporation prior to the implementation of the rules and regulations of this 
Act. 
Section 5. Oversight Provision. Congress shall conduct a bi-annual review of the 
management and implementation of the performance and program herein enacted. 
Section 6. Separability Clause. If any part or provision of this Act shall be held 
invalid or unconstitutional, the other provisions which are not affected thereby shall 
remain valid and in full force and effect. 
Section 7. Repealing Clause. All laws, presidential decrees, executive orders, 
rules and regulations or parts thereof which are inconsistent with the provisions of this 
Act are hereby repealed, amended or modified accordingly. 
Section 8. Effectivity.-This 
Act shall take effect fifteen (15) days after its 
publication in at least three (3) newspapers of general circulation. 
Approved, 
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