Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No. 831]

Introduced by BAYAN MUNA Rep. CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C, CULLAMAT,
ACT TEACHERS Party-List Representative FRANCE L, CASTRO,
GABRIELA Women’s Party Representative ARLENE D. BROSAS
and KABATAAN Party-List Representative SARAH JANE I. ELAGO

AN ACT.

REMOVING THE AUTOMATIC INCREASE OF PREMIUM CONTRIBUTIONS.
OF THE PHILIPPINE HEALTH INSURANCE CORPORATION, AMENDING
FOR THE PURPOSE SECTION 10 OF REPUBLIC ACT NO, 11223, OTHERWISE
KWOWN AS THE UNIVERSAL HEALTH CARE ACT

EXPLANATORY NOTE

Since 2017, under the Duterte administration, the Philippines is already experiencing economic
slowing down. ‘The worsening economie situation was further accelerated down to recession
when the coronavirus disease also struck the Philippines. For the second quarter of 2020, the
gross domestic product (GDP) fell down to -16.9%, ranking the Philippines’s economy situation
the worse among Southeast Asian countries. During the third quarter, the Philippine Statistics
Authority recorded 11.5% GDP growth rate.

Amidst the pandemic, where millions were left behind jobless, particularly during the various
levels of community quarantines, Filipinos will now be facing another problem at the start of
2021: increased premium contributions of Philippine Health Insurance Corp.

Tast January 2, 2021, PhilHealth spokesperson Rey Balena said that the health insurer will stare
collecting the mandated hike in member's contribution,' As mandated by Section 10 of Republic
Act No. 11223, otherwise known as the Universal Health Care Act, the premium contributions
will be increased by 0.5% every year, from 2021 co 2025. This will effectively inctease the current
premium rate from 3% of the member’s monthly basic salary in 2020 to 3.5% and 5% in 20

Moreover, in 2020, several corruption issues involving the PhilHealth was exposed to public,
Which includes its irregular implementation of Interim Reimbursement Mechanism (IRM).
According to PhilHlealth’s former anti-fraud legal officer ‘Thorrsson Montes Keith, around P15
billion was corrupted through unauthorized releases of IRM and proposed overpriced

" hutpsc!/newsinfo inquirer net/1378744/philhealth-goes-ahead-with-premium-hike

JAN 06 2024


information technology systems. In addition, former PhilHealth president retired Brig. Gen.
Ricardo Morales also previously revealed to Congress that over P10 billion was lost due to fraud
in 20192

With the current economic situation and unresolved PhilHealth corruption issues, it is

unacceptable, unjust and insensitive to the Filipino people to be burdened with higher premium
contributions. In this light, the passage of this bill is earnestly sought.

Approved,

Bod a

REP. CARLOS ISAGANI T. ZARATE.

Bayan Muna Partplist

RDINAND R. GAITE REP. EUFEMIA C. CULLAMAT
Bayan Munna Paraylst Bayan Muna Partylist
wa 4
ME
REP, FRANCE L, CASTRO REP. 'NH/D. BROSAS
ACT Teachers Partylist GABRIELA Women's Party

REP. SARAH JANE |. ELAGO
Kabataan Partylist

* hips: //ennphilippines.conv/news/2020/8/4/PhilHealth-P | 5-billion-stolen-mafia-exces html


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular §

8
HOUSE BILL No, ""

Inteoduced by BAYAN MUNA Rep. CARLOS ISAGANI T. ZARATE,
FERDINAND R. GAITE and EUFEMIA C. CULLAMAT,
ACT TEACHERS Party-List Representative FRANCE L. CASTRO,
GABRIELA Women's Party Representative ARLENE D. BROSAS
and KABATAAN Party-List Representative SARAH JANE I, ELAGO

AN ACT
REMOVING THE AUTOMATIC INCREASE OF PREMIUM CONTRIBUTIONS
OF THE PHILIPPINE HEALTH INSURANCE CORPORATION, AMENDING
FOR THE PURPOSE SECTION 10 OF REPUBLIC ACT NO. 11223, OTHERWISE,
KWOWN AS THE UNIVERSAL HEALTH CARE ACT

Heit enacted by the Senate and the Honse of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 10 of Republic Act No. 11223 shall be amended as follows:
See. 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 % P 10,000 50,000,

2020 3.00% P 10,000 60,000

2021 P 10,000 P70,000

2022 P 10,000 P80,000

2023, 450% P 10,00 P90,000

2024 5.00% P 10,000 P100,000

2025 5.00% P 10,000 P100,000

]

FOR DIRECT CONTRIBUTORS, PREMIUM RATES
SHALL BE FIXED AND ADJUSTED FROM TIME TO
TIME THROUGH ENACTMENT OF CONGRESS,
TAKING INTO CONSIDERATION ACTUARIAL


CALCULATIONS, RATE OF BENEFITS, AND THE
CAPACITY OF THE MAJORITY OF CONTRIBUTORS TO
PAY.

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 PhilHealth: Provided, furthermore; that the DOT, in
coordination with PhilHealth, may request Congress to appropriate
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 inerease in bene

SECTION 2. Repealing Clause. ~ All laws, decrees, executive orders and other presidential
issuance, which are inconsistent with this Act, are hereby repealed, amended o modified
accordingly.

SECTION 3. Effectivity. This Act shall take effect fifteen (15) days afier its publication in the
Official Gazette or iat least two (2) newspapers of general circulation,

Approved,