EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S.B. No. 1971
B
FILED
DATE
T>ME
NOtX
Introduced by Senator Richard 3. Gordon
AN ACT
AUTHORIZING THE DEFERMENT OF THE SCHEDULE OF PREMIUM 
CONTRIBUTIONS UNDER SECTION 10 OF REPUBLIC ACT NO. 11223, 
OTHERWISE KNOWN AS THE UNIVERSAL HEALTH CARE ACT,
IN TIMES OF EMERGENCIES AND CALAMITIES.
EXPLANATORY NOTE
Article II, Section 9 of the 1987 Constitution provides that, "The State shall 
promote a just and dynamic social order that will ensure the prosperity and 
independence of the nation and free the people from poverty through policies that 
provide adequate social services, promote full employment, a rising standard of living, 
and an improved quality of life for all."
The Philippines now has 478,761' confirmed COVID-19 cases after the 
Department of Health (DOH) reported 959 additional cases as of January 4, 2021.
The DOH also reported the death toll to 9,263, with 448,279 recoveries. Of the 
total cases, 21,219 are active.
The outbreak of COVID-19 constitutes an emergency that threatens national 
security. This requires government agencies to implement urgent and necessary 
measures to aid the conditions and alleviate the suffering of the Filipinos. This includes 
the introduction of legislative measures to address the circumstances of the pandemic, 
such as the deferment of the mandated increase in premium contributions under 
Republic Act No. 11223, otherwise known as the Universal Health Care Act.
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There will be an increase in 2021 to 3.5% of monthly income from 3% at present. 
With this, those earning below P10,000 shall have a fixed contribution of P350 per


month, those earning PIO,000.01 to 69,999.99 shall pay a monthly premium of P350 
to P2,499.99, while those earning P70,000 monthly or higher is fixed at P2,450 a 
month. The guidelines are contained in PhilHealth Circular No. 2020-0005 issued on 
March 5, 2020.
The impact of Covid-19 pandemic is unprecedented that the Philippine economy 
is said to contract by 7.3% in 2020 amid the coronavirus disease (COVID-19) 
pandemic before growth returns to 6.5% in 2021, according to a report from the Asian 
Development Bank (ADB) released in September 2020. The contraction is due to 
subdued private consumption and investment expected for the rest of the year and 
uncertainties about the global economic recovery.
The country's unemployment rate in October 2020 was estimated at 8.7 
percent. This is equivalent to 3.8 million unemployed Filipinos who are 15 years old 
and over. This unemployment rate is higher than the 4.6 percent (or about 2.0 million 
unemployed Filipinos who are 15 years old and over) in the same period a year ago.
Underemployment rate is at 14.4 percent, which is higher than the October 
2019 rate at 12.8 percent.1 An increase in the payment of premiums may take a toll 
on employers who are trying to keep up with their operations, and employees who 
are persisting with difficulty and challenge.
Beyond the human tragedy, there is a direct economic impact of the Covid-19 
pandemic. This bill seeks to accord relief and flexibility to the people by empowering 
the President to temporarily suspend or defer increase in premium contributions 
scheduled under the Universal Health Care Act.
It is for the reasons stated above that the passage of this measure is earnestly 
sought.
CrnSORDON
Senator
1 https://psa.gov.ph/statistics/survey/labor-and-employment/labor-force- 
survey/titIe/Employment%20Situation%20in%200ctober%202020


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
I VEOt-1
E-FILED ^21) 
Ills Tfrv Jan 05 2021 mi
00 TII.IE;, 3:48 p.m.
SENATE 
S. No. 1971
Introduced by Senator Richard 3. Gordon
INDEX,
AN ACT
AUTHORIZING THE DEFERMENT OF THE SCHEDULE OF PREMIUM 
CONTRIBUTIONS UNDER SECTION 10 OF REPUBLIC ACT NO. 11223, 
OTHERWISE KNOWN AS THE UNIVERSAL HEALTH CARE ACT,
IN TIMES OF NATIONAL EMERGENCY OR STATE OF CALAMITY.
Be it enacted by the Senate and the House of Representatives of the Phiiippines in
Congress assembied:
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SECTION 1. Sec. 4(a)(9) of Republic Act No. 11223 also known as the Universal
2 
Health Care Act is hereby amended as follows:
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"Section 10. Premium Contributions. - For direct contributors, premium rates 
shall be in accordance with the following schedule, and monthly income floor 
and ceiling:
Year
Premium
Rate
Income Floor
Income
Ceiling
2019
2.75%
PIO,000.00
P50.000.00
2020
3.00 %
P10,000.00
P60,000.00
2021
3.50%
P10,000.00
P70,000.00
2022
4.00 %
P10,000.00
P80,000.00
2023
4.50 %
PIO,000.00
P90,000.00
2024
5.00 %
PIO,000.00
PlOO,000.00
2025
5.00 %
P10,000.00
PlOO,000.00
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Provided, That for indirect contributors, premium subsidy shall be gradually 
adjusted and included annually in the General Appropriations Act


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(GAA): Provided, (further), That the funds shall be released to 
PhilHealth: Provided, FURTHER (furthermore)^, That the DOH, in coordination 
with PhilHealth, may request Congress to appropriate supplemental funding to 
meet targeted milestones of this Act: Provided, FURTHERMORE (fmaiiy). That 
for every increase in the rate of contribution of direct contributors and premium 
subsidy of indirect contributors, PhilHealth shall provide for a corresponding 
increase in benefits: PROVIDED, HNALLY, THAT THE PRESIDENT OF THE 
PHILIPPINES SHALL HAVE THE POWER TO TEMPORARILY SUSPEND OR DEFER 
THE IMPLEMENTATION OF INCREASES IN THE PREMIUM CONTRIBUTION OF 
THE NATIONAL HEALTH INSURANCE PROGRAM MANDATED IN THIS SECTION 
IN TIMES OF A DECLARED NATIONAL EMERGENCY OR STATE OF CALAMITY, 
WITHIN A PERIOD OF NOT MORE THAN SIX MONTHS AND MAY BE EXTENDED 
TO ANOTHER SIX MONTHS AS MAY BE APPROPRIATE AND NECESSARY IN THE 
INTEREST OF THE PUBLIC./,r
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SEC. 2. Repealing Clause. - All laws, acts, presidential decrees, executive orders, 
administrative orders, ruies and reguiations or other issuances inconsistent with or 
contrary to the provisions of this Act are hereby amended, modified or repealed 
accordingly.
SEC. 3. Separability Clause. - If -any provision of this Act is held invalid or 
unconstitutionai, the remainder of the Act or the provision not otherwise affected shall 
remain valid and subsisting.
SEC. 4. Effectivity Clause. This Act shali take effect fifteen (15) days after 
pubiication in the Offidai Gazette or in at least two (2) newspapers of general 
circulation.
Approved,