Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No.7424

Introduced by
ANAKALUSUGAN REPRESENTATIVE MICHAEL T. DEFENSOR

EXPLANATORY NOTE

The Universal Health Care Act, embodied by R.A. 11223, has been hailed by many
sectors as a landmark law. The World Health Organization described it as “a critical step
towards health for all Filipinos as it will facilitate major reforms to consolidate existing yet
fragmented financial flows, increase the fiscal space for benefit delivery, improve the
governance and performance of devolved local health systems, and institutionalize support

mechanisms such as health technology assessment and health promotion.”'

Universal Health Care coverage is a boon for a third world country like the
Philippines where hospital care is prohibitive. According to the National Economic and
Development Authority, in 2017, 54.5% of total health payment came from Filipinos’ own
pockets. It cited a 2017 National Demographic and Health Survey where the average cost of
treatment for confined individuals is PHP21,400, only half of which is shouldered by the
Philippine Health Insurance Corporation (Philhealth). This does not include the cost of

medicines or services from external pharma and laboratories that amounts to an average

of PhPS,237.”

Aiming for 100% medical coverage for all Filipinos, however, entails securing funds
to support the program. According to the DOH, the implementation of the UHC law for its
first year needs P257 billion which will be sourced from sin tax collections and partly from

filipinos
2 https://www.neda.gov.ph/explainer-universal-health-care-law-and-what-it-means-to-ph-development,



income generated by the Philippine Amusement and Gaming Corporation (PAGCOR) and
PCSO. It goes without saying that premium contributions would also be increased as the

membership and benefits package improved.

As with all laws, birthing pains are bound to happen. The Universal Health Care Act
categorized Migrant Workers as Direct Contributors, along with other income deriving class
such as Government and Private employees and professionals. What the UHC Act failed to
recognize is the valid distinction of Migrant workers as a separate class due to the location of
their employment. One of the practical implications of being lumped in a single category with
locally-based Direct Contributors is that Migrant Workers are forced to pay both Employee
and Employer shares, thereby doubling their premium contributions. This results in a valid
distinction that should be recognized under the law. There is no violation of the Equal
Protection Clause if a valid distinction exists, hence premium contributions of Migrant

Workers should not be the same as locally-based Direct Contributors.

This bill seeks to recognize Migrant Workers as a distinct class within the Category of
Direct Contributors under the UHC Act. The Philhealth and the Overseas Workers Welfare
Administration (OWWA), along with other concemed agencies of the government and the
private sector, should be given leeway to draft the proper premium rates and its
implementation so that it would be a fit for the special circumstances of our Migrant

Workers.

Considering the foregoing reasons, the passage of this bill is earnestly requested.

Anakalusugan Party-List Representative

3id.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
Second Regular Session

House Bill No.7424

Introduced by
ANAKALUSUGAN REPRESENTATIVE MICHAEL T, DEFENSOR

AN ACT AMENDING SECTION 10 OF 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:

1 Section. 1. Short Title. — This Act shall be known as the “Amendatory Provision for
2. Migrant Workers under the Universal Health Care Act.”

3 Sec. 2. Declaration of Policy. ~ It is the policy of the State to provide for Universal
4 Health Care provided that it is people-oriented, responsive to the times and cognizant of

5 different sets of values and special circumstances.

6 Sec. 3. Amendment. — Section 10 of Republic Act 11223 is hereby amended to read as
7 follows:
8 “Section 10. Premium Contributions ~ For direct contributors, premium rates shall be
9 in accordance with the following schedule, and monthly income and floor ceiling:
10
Year Premium Income Floor Income
Rate Ceiling
2019 2.75% P10,000.00 50,000.00
2020 3.00% P10,000.00 60,000.00
2021 3.50% P10,000.00 70,000.00
2022 4.00% P10,000.00 80,000.00
203 450% 10,000.00 'P90,000.00



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20
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23
24
25

26
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2024 3.00% 10,000.00 100,000.00

2025 5.00% P10,000.00 100,000.00

PROVIDED, THAT IN THE CASE OF FILIPINO MIGRANT WORKERS,
CONSIDERING THEIR PECULIAR EMPLOYMENT CIRCUMSTANCES AS
COMPARED TO OTHER DIRECT CONTRIBUTORS, THE PHILHEALTH IN
PARTNERSHIP WITH THE OVERSEAS WORKERS WELFARE
ADMINISTRATION (OWWA), DEPARTMENT OF FOREIGN AFFAIRS
(DFA), OTHER CONCERNED AGENCIES AND RELEVANT CIVIL SOCIETY
GROUPS AND NON-GOVERNMENT ORGANIZATIONS, SHALL ISSUE A
SEPARATE CIRCULAR REGARDING PREMIUM CONTRIBUTIONS FOR
BOTH LAND-BASED AND SEA-BASED FILIPINO MIGRANT WORKERS
THAT WILL BE RESPONSIVE TO THEIR WORK LOCI BUT SHALL
ENSURE THE BEST MEDICAL COVERAGE;

Provided, that for Indirect Contributors, premium subsidy shall be gradually
adjusted and included annually in the General Appropriations Act (GAA):
Provided, further, That the funds shall be released to the Philhealth: Provided,
furthermore; That the DOH, in coordination with Philhealth, MAY REQUEST
Congress to provide supplemental funding to meet targeted milestones of this
Act: Provided, finally, 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.”

Sec. 4. Repealing Clause. - All laws, decrees, executive orders, and other
presidential issuances which are inconsistent with this Act are hereby repealed, amended or

modified accordingly.
Sec. 8. Separability Clause. ~ If, for any reason, any section or provisions of this Act
is held unconstitutional or invalid, the other sections or provisions hereof shall not be affected

thereby.

Sec. 9. Effectivity. - This Act take effect fifteen days (15) after its publication in at
least two (2)_—snational_~=—snewspapers_ © oof,-~—general__—_circulation.

Approved