FOURTEENTH CONGRESS OF THE REPUBLIC)'  
OF THE PHILIPPINES 
)  
Third Regular Session 
)  
SENATE ':./ 
S.B. No. '3'·503 
Introduced by Senator Miriam Defensor Santiago 
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 governnient 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. At 
the end of year 2000, less than 20% ofour country's population has insurance coverage. l 
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 tenns 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 generall>: 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. 
1 MCA Limited. Philippines Special Report: The Health Care Syst~m in the Philippines. December 2001 
1 


FOURTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
, 
Third Regular Session 
) 
SEN~ . 
S.B. No. . ~,llO3 
Introduced by Senator Miriam Defensor Santiago 
1 
AN ACT 
2 
TO ENHANCE CITIZEN AWARENESS OF INSURANCE n~FORMATION AND SERVICES 
3 
BY ESTABLISHING STANDARDS IN THE LANGUAGE EMPLOYED IN INSURANCE 
4 
DOCUMENTS 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
5 
SECTION 1. Short Title. - This Act shall be known as the "Plain Language in Health 
6 
Insurance Act." 
7 
SECTION 2. Purpose. 
The purpose of this Act is to improve the effectiveness and 
8 
accountability of health insurance issuers, health plans, and government health care programs by 
9 
promoting clear communication that the public can und~rstand and use. 
10 
SECTION 3. Definitions. ­
For purposes ofthis,Act the term 
11 
A COVERED DOCUMENT- means any publicly distributed document issued by a 
12 
health insurance issuer, health plan, or govei:nment health care program; 
, 
13 
B. PLAIN LANGUAGE - means language that the intended audience can readily 
14 
understand and use because that language is clear, concise, well organized, and 
15 
follows other best practices ofplain language writing; and 
16 
C. SECRETARY - means the Secretary ofHealth, unless otherwise indicated. 
17 
SECTION 4. Requirement to Use Plain Language in New Documents. - Not later than 
18 
one year after the date of effectivity of this Act, any health insurance issuer, health plan, and 
19 
government health care program shall use plain language in any covered document of the plan 
20 
issued or substantially revised. 
1  


5 
10 
15 
20 
25 
SECTION 5. Guidelines. 
The Secretary of Health, not later than 6 months after the 
2 
effectivity date ofthis Act, shall develop guidelines on implementing the requirements of Section 
3 
4 of this Act. The Secretary shall issue such guidelines· to health insurance issuers, health plans, 
4 
and government health care programs. 
SECTION 6. Corrective Action Plan. - If the Secretary finds that a health insurance 
6 
issuer or health plan is in violation of Section 4 of thIS Act, the Secretary shall issue an order 
7 
requiring the issuer or plan to submit a corrective action plan within 90 days for review and 
8 
approval by the Secretary. 
9 
SECTION 7. Penalties. ~ Any health insurance issuer or health plan that violates an order 
under Section 6 or any provision of a corrective action plan approved by the Secretary pursuant 
11 
to the same shall be liable for a penalty in an amount not to exceed One Hundred Thousand 
12 
Pesos (Php 100,000.00) for each such violation. 
13 
SECTION 8. Government Health Care Programs. 
The Secretary, in consultation with 
14 
other appropriate departments and agencies, shall. establish mechanisms to ensure that 
government health care programs meet the requirements of Section 4. 
16 
SECTION 9. Initial Report to Congress. - Not later than six months after the effectivity 
17 
date of this Act, the Secretary shall submit to the appropriate committees in the Senate and the 
18 
House of Representatives a report that describes how the agency intends to meet the following 
19 
objectives: 
A. Communicating the requirements of this Ac.t to health insurance issuers, health plans, 
21 
and government health care programs; 
22 
B. Training government health care program employees to write in plain language; 
23 
C. Meeting the requirement under Section 4; 
24 
D. Ensuring ongoing compliance with the requi~ements ofthis Act; 
E. Enforcing the requirements of this Act pursuant to Section 6; and 
\ 
2 


..  
F. Designating a senior official to be responsible for implementing the requirements of 
this Act. 
2 
SECTION 10. Annual Reports. 
The Secretary shall submit reports on compliance with 
• 
3 
4 
this Act to the appropriate committees in the Senate and the House of Representatives: 
5 
A. annually for the first 2 years after the date of enactment of this Act; and 
6 
B. once every 3 years thereafter. 
7 
SECTION 11. Appropriations. -The amount n~cessary for the initial implementation of 
8 
this Act shall be charged against the appropriations of the Department of Health under the 
9 
current General Appropriations Act. Thereafter, such sum as may be necessary for its full 
10 
implementation shall be included in the annual General Appropriations Act as a distinct and 
11 
separate item. 
12 
SECTION 12. Separability Clause. 
If any provision or part of this Act is held invalid or 
13 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
14 
valid and subsisting. 
15 
SECTION 13. Repealing Clause. 
Any law, presidential decree or issuance, executive 
16 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
17 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
18 
SECTION 14. Effectivity Clause. - This Act ~hall take effect fifteen (15) days after its 
19 
pUblication in at least two (2) newspapers of general circulation. 
Approved, 
lapmJOJ52009 
3