Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 660

Introduced by
ACT Teachers Party-List Rep. ANTONIO L. TINIO.
and KABATAAN Party-List Rep. RENEE LOUISE M. CO

AN ACT REPEALING PHILHEALTH’S COMPULSORY COVERAGE OF
MIGRANT WORKERS, MANDATORY PAYMENT WITH INTEREST FOR ALL
MISSED CONTRIBUTIONS, AND AUTOMATIC INCREASE OF PREMIUM
CONTRIBUTIONS, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO.
11223 OR THE UNIVERSAL HEALTH CARE ACT

EXPLANATORY NOTE

Prior to the enactment of Republic Act 11223 or the Universal Health Care Act in 2019,
PhilHealth members were already entitled to the benefits if they had paid the premium
contributions of at least three months within the six months preceding the availment.
Currently, Section 9 of RA 11223 stated that "failure to pay premiums shall not prevent the
enjoyment of any program benefits," but it is contrary to what the law enforced where all

missed contributions shall be paid with interest.

Since its implementation, the aforementioned provision has burdened members, employers,
and self-employed direct contributors, especially when the COVID-19 pandemic resulted in
millions of people losing their jobs because they were required to pay all missed

contributions before they were able to receive their benefits.

Filipinos also faced another problem when the Philippine Health Insurance Corp.
(PhilHealth) implemented the new contribution rate. As mandated by Section 10 of Republic
Act No. 11223, otherwise known as the Universal Health Care Act, the premium


contributions increased from 2.75% of the member's monthly basic salary in 2019 to 5% in
2025.

On April 16, 2020, PhilHealth also released Circular 2020-0014, which directs overseas
Filipino workers (OFWs), including land-based and sea-based workers, to pay a hefty 3%
of their income as a mandatory premium contribution, with the premium rate increasing
annually by 0.5% until 2024

Moreover, in 2020, several corruption issues involving PhilHealth were exposed to the
public, including its irregular implementation of the Interim Reimbursement Mechanism
(IRM). According to PhilHealth's former anti-fraud legal officer Thorsson Montes Keith,
around P15 billion was corrupted through unauthorized releases of IRM and proposed
overpriced information technology systems. In addition, former PhilHealth president retired
Brig. Gen. Ricardo Morales also previously divulged to Congress that over P10 billion was
lost due to fraud in 2019.

With the current economic situation and unresolved PhilHealth corruption issues, it is
unacceptable and unjust on the part of the toiling Filipino people to be burdened with the
inability to access benefits and higher premium contributions due to the unfair enactment of

policies and provisions.

In view of the foregoing, the immediate passage of this bill is earnestly sought.

Rep ANTONIO L. TINIO Rep. RENEE 1JOUISE M. CO
ACT Teachers Party-List KARAPAMN Party-List


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Batasan Hills, Quezon City

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. $00

Introduced by
ACT Teachers Party-List Rep. ANTONIO L. TINIO
and KABATAAN Party-List Rep. RENEE LOUISE M. CO

AN ACT REPEALING PHILHEALTH’S COMPULSORY COVERAGE OF
MIGRANT WORKERS, MANDATORY PAYMENT WITH INTEREST FOR ALL
MISSED CONTRIBUTIONS, AND AUTOMATIC INCREASE OF PREMIUM
CONTRIBUTIONS, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO.
11223 OR THE UNIVERSAL HEALTH CARE ACT

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

SECTION 1. Section 4 (f) is hereby amended to read as follows:
XXX
(f) Direct contributors refer to those who have the capacity to pay premiums, are
gainfully employed and are bound by an employer-employee relationship, or are self-
earning, professional practitioners, [migrant—workers], including their qualified
dependents, and lifetime members;

SECTION 2. Section 9 of Republic Act No. 11223 is hereby amended to read as follows:
Section 9, Entitlement to Benefits —

Every member shall be granted immediate eligibility for health benefit package under
the Program: Provided, That PhilHealth Identification Card shall not be required in
the availment of any health service: Provided, further, That no co-payment shall be
charged for _—_—services__—rendered=—in.~—sbasic. = or_~—ward
accommodation: Provided, furthermore, That co-payments and co-insurance for
amenities in public hospitals shall be regulated by the DOH and
PhilHlealth: Provided, finally, That the current PhilHealth package for members shall
not be reduced

PhilHealth shall provide additional program benefits for direct contributors, where
applicable: Provided, That failure to pay premiums shall not prevent the enjoyment

3


of any Program benefits: Provided, further, That [employersand-self-employed

migrant-werkers.] A MEMBER WHOSE PREMIUM CONTRIBUTIONS FOR
AT LEAST THREE (3) MONTHS HAVE BEEN PAID WITHIN THE SIX (6)
MONTHS PRIOR TO THE FIRST DAY OF AVAILMENT, SHALL BE
ENTITLED TO THE BENEFITS OF THE PROGRAM

SECTION 3. Section 10 of Republic Act No. 11223 is hereby amended to read as
follows:

Section 10, Premium Contributions —

‘Year | Premium | Income | Income

Rate Hoor Ceiling
(Tors [3.45% |p 10,000 | Ps0.000

2024 | 500% —-P40-000 | P100.600

2020 3.00-% P40,000 P60;000
2024 350% P46,000 70-000
2b 400-% P40:000 80.000
2023, 450% P40:000 P90.000

2025 | 500% | P410.000 | 2100000

—

FOR DIRECT CONTRIBUTORS, PREMIUM RATES SHALL BE FIXED
AND ADJUSTED FROM TIME TO TIME THROUGH THE ENACTMENT
OF CONGRESS, AFTER DUE CONSULTATION AND 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 funds shall be released to PhilHealth: Provided, furthermore; that the DOH, 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 increase in
benefits.

SECTION 4. Separability Clause. If, for any reason, any portion or provision of this Act
shall be held unconstitutional or invalid, the remaining provisions not affected thereby shall
continue to be in full force and effect.


SECTION 5. Repealing Clause. All laws, decrees, executive orders and other presidential
issuance, which are inconsistent with this Act, are hereby repealed, amended or modified

accordingly

SECTION 6. Effectivity. This Act Shall take effect fifteen (15) days after its publication in
the Official Gazette or in at least two (2) newspapers of general circulation.

Approved,