FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
p i r d  Regular Session 
S E N A T E  
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
Article XIII, Section 11 of the Constitution provides that the State should adopt 
an integrated and comprehensive approach to health development which shall endeavor 
to make essential goods, health and other social services available to all the people at 
affordable costs. 
As we race to reach the Millennium Development Goals by 2015, the health 
sector should be one of the prioritized sectors by the State today. However, what is 
looming is a slow response by the State, as total health expenditure only accounted for 
9.4 percent of the country's total expenditure in 2005. The share of health expenditure to 
GDP in 2005 was lower at 3.3 percent than the previous year's 3.4 percent. Overall, it is 
still below the 5 percent standard set by the World Health Organization for developing 
countries like the Philippines. Meanwhile, the out-of-pocket payments are envisioned to 
be lower than that of social insurance so as to. give citizens appropriate health care 
support. Unfortunately, the share of out-of-pocket payments has increased to 49%, while 
that of social insurance payments is a low 11%. 
Although the Republic Act 7875, otherwise known as the "Nah'onal Health 
Insurance Act of 1995," mandates that an affordable and accessible health care coverage 
should be made available to all citizens, access to health care continues to be a problem 
of, if not completely missing, for indigent Filipinos all over the country. The bill seeks to 
address this by ensuring that all the benefits under Republic Act 7875 are made available 
to indigent Filipinos, the most exposed to health risk. 
In view of the foregoing, the passage of the bill is earnestly sought. - 
LO ENLEGARDA 
Senator 
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FOURTEENTH CONGRESS OF THE 
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Third Regular Session 
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REPUBLIC OF THE PHILIPPINES 
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BY ’ .- 
S.B. sENA3%2 
No.- 
... 
Introduced by Senator Loren Legarda 
AN ACT 
TO ENSURE THAT INDIGENT FILIPINOS ARE GRANTED WITH BASIC 
HEALTHCARE SERVICES, PROVIDING FOR A UNIVERSAL 
HEALTHCARE COVERAGE AMENDING FOR THIS PURPOSE SEC, 29 OF 
REPUBLIC ACT NO. 7875 OTHERWISE KNOWN AS THE NATIONAL 
HEALTH INSURANCE ACT OF 1995, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION I. Short Title. - This Act shall be known as the 
“Mandato ry Healthcare Coverage of Every lndigent Filipino Act.“ 
SEC. 2. 
Declaration of Policy. - Pursuant to Section 15, Article I1 
of the 1987 Constitution, the State hereby declares the policy of protecting 
and promoting the right to health of the people and instilling health 
consciousness among them. Towards this end, the State shall adopt 
an integrated and comprehensive approach to health development, which 
shall endeavor to make essential goods, health and other social services 
available to indigent Filipinos. 
SEC. 3. 
Sec. 29 of Republic Act No. 7875 is hereby amended to 
read as follows: 
SEC. 29. Payment for Indigent Contributions. - THE ANNUAL REQUIRED 
PREMIUM contributions for THE COVERAGE OF THE indigent 
[members] FAMILIES IN THE PROGRAM shall be FULLY [partially] 
subsidized by the [local government unit where the member resides. The 
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Corporation shall provide counterpart financing equal to the LGU's 
subsidy for indigents: Provided, That in the case of fourth, fifth and sixth 
class municipalities, the] National Government FOR INCLUSION IN 
THE ANNUAL GENERAL APPROPRIATIONS ACT (GAA) BASED 
ON THE POVERTY INCIDENCE SET BY THE NATIONAL 
STATISTICS 
COORDINATION 
BOARD 
(NSCB). 
FOR 
THIS 
PURPOSE, THE IDENTIFICATION OF QUALIFIED INDIGENT 
FAMILIES SHALL BE CONDUCTED BY THE DEPARTMENT OF 
SOCIAL WELFARE AND DEVELOPMENT (DSWD). [shall provide up 
to ninety percent (90%) of the subsidy for indigents until such time that 
they shall have been upgraded to first, second or third class 
municipalities. The share of the LGUs shall be progressively increased 
until such time that its share becomes equal to that of the National 
Government. (a)] 
IN CASE OTHER SPONSORS / DONORS WANT TO PARTICIPATE 
IN THE PROGRAM, THEY SHALL ALSO BE OBLIGED TO PAY THE 
ANNUAL REQUIRED PREMIUM FOR THE COVERAGE OF THE 
INDIGENTS. THE CORPORATION SHALL ISSUE THE NECCESARY 
GUIDELINES FOR THE IMPLEMENTATION OF THIS SCHEME. 
SEC. 4. 
Implementing Rules and Regulations. - The Secretary 
of Health, in coordination with the Philippine Health Insurance 
Corporation (PHIC) shall, within sixty (60) days from the effectivity of 
this Act, promulgate the necessary rules and regulations for the effective 
implementation of the provisions of this Act. 
SEC.5. Separability Clause, - If any provision of this Act is 
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declared unconstitutional or invalid, the provisions not affected thereby 
shall continue to be in full force and effect. 
SEC. 6. Repealing Clause. - All laws, including Republic Act No. 
7875 as amended, decrees orders, rules and regulations or other issuance 
Inconsistent with the provisions of this Act are hereby repealed, amended 
or modified accordingly. 
SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) 
days after its publication in two (2) national newspapers of general 
circulation. 
Approved, 
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