Republic of the Philippines
HOUSE OF REPRESENTATIVES \
Quezon City \

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, 6675

rodur by the Honorable Precious Hipolito Castelo
EXPLANATORY NOTE

As world face the COVID-19 crisis, Overseas Filipino Workers (OFWs) are particularly in a
pickle. Itis quite undeniable that there is a rise in global unemployment rates because of the
effects of the pandemic and the measures employed to deal with it. Many OFWs are affected
by the crisis and some of them are forced to go home through government repatriation without
any assurance of job security in the future.

On April 2, 2020, Philippine Health Insurance Corporation (PhilHealth) signed PhilHealth
Circular No. 2020-0014 for the implementation of the collection of PhilHealth premium
contributions as provided in Republic Act No. 11223, otherwise known as the “Universal Health
‘Care Act’.

Under the said law, from a fixed rate of annual premium of PhP2,400.00, the amount of
premium contribution is now computed based on the annual salary. OFWs are now required
to remit 3% of their salaries. By 2021, the contribution will be raised to 3.5%, and it will be
further raised annually until the amount hits 5% by 2024.

For instance, an OFW eaming $200 or PhP20,800 monthly (from an exchange rate of
PhP62.00 per US dollar) will have to pay PhP7,488 to PhilHealth for the year 2020. Since
there is a provided income ceiling of PhP60,000.00 for the year 2020, an OFW eaming
PhP60,000 or more will have to pay PhP21,600.00 for his annual contribution this year. This
is a big jump from the previous fixed rate of PhP2,400.00.

It cannot be gainsaid that the issuance of the Circular is quite ill-timed considering the current
COVID-19 crisis being faced by OFWs. Their situation is also quite unique since the premiums
are solely paid by them, as opposed to domestic workers whose contributions are 50%
subsidized by their respective employers.

As such, it is the intent of this bill to impose a moratorium on the increase of PhilHealth
premium contributions for OFWs as provided in RA 11223.

The immediate passage of this bill is most eamestly sought.

HIPOLITO CASTELO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

fousslBIn okeces

Introduced by the Honorable Precious Hipolito Castelo

AN ACT
IMPOSING A MORATORIUM ON THE INCREASE OF PHILHEATH PREMIUM
CONTRIBUTIONS OF OVERSEAS FILIPINO WORKERS (OFWs), AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 11223, OTHERWISE KNOWN AS THE UNIVERSAL
HEALTH CARE ACT

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. - This Act shall be known as the "Moratorium on Increase of
OFW PhilHealth Premium Contributions Act of 2020".

SEC. 2. Declaration of Policy. - The State affirms labor as a primary social economic
force. It shall protect the rights of workers and promote their welfare. Towards this end, it shall
be the policy of the State not to unduly burden OFWs amid the COVID-19 crisis, by suspending
the implementation of the increase of their annual PhilHealth premium contributions as
provided under Republic Act No. 11223 or the Universal Health Care Act.

SEC. 3. Moratorium on increase of OFW PhilHealth Premium Contributions. — There
shall be a moratorium or suspension on the increase of PhilHealth premium contributions for
all OFWs, hereby amending the Universal Health Care Act. The previous annual fixed rate of
Two Thousand and Four Hundred Philippine Pesos (PhP2,400.00) shall instead apply to them.

SEC. 4. Coverage of Moratorium. — For purposes of the Universal Health Care Act, the
moratorium shall apply only to OFWs.

SEC. 5. Implementing Rules and Regulations. — Within thirty (30) days from the
effectivity of this Act, the Department of Health (DOH) shall promulgate the necessary rules
and regulations to effectively implement the provisions of this Act.

SEC. 6. Separability Clause. - If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

SEC. 7. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent
with, the provisions of this Act is hereby repealed, modified, or amended accordingly.

SEC. 8. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,