FIFTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
SENATE 
« .. 
4 
s.n~ No. _--'--__ 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
10 
JUl -1 
1\8 :32 
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 
6.1 percent of the country's total expenditure in 2006. Although the share of health 
expenditure to GDP in 2007 was higher at 3.9 percent than the previous year's 3.8 
percent, 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 Republic Act 7875, otherwise known as the" National Health inSllYnnce 
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. 
~OREN 
LEGi'iit--:::> 
Senator 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B/No. 
4 
Introduced by Senator Loren Legarda 
AN ACT 
I:'H CE 
I 0 
,JUt -1 
II 8 :32 
TO ENSURE THAT INDIGENT FILIPINOS ARE GRANTED WITH BASIC 
HEALTHCARE SERVICES, PROVIDING FOR A UNIVERSAL HEALTHCARE 
COVERAGE AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 7875 
OTHERWISE KNOWN AS THE NATIONAL HEALTH INSURANCE ACT OF 1995 
AS AMENDED AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Mandatory Universal 
2 
Healthcare Coverage Act of 2010." 
3 
4 
SEC. 2. Declaration of Policy. - Pursuant to Section 15, Article II of the 1987 
5 
Constitution, the State hereby declares the policy of protecting and promoting the right 
6 
to health of the people and instilling health consciousness among them. Towards this 
7 
end, the State shall adopt an integrated and comprehensive approach to health 
8 
development, which shall endeavor to make essential goods, health and other social 
9 
services available to indigent Filipinos. 
10 
11 
SEC. 3. Section 4 of Republic Act. No. 7875, as amended, is hereby amended to . 
12 
read as follows: 
13 
14 
SEC. 4. Definition of Terms - For the purpose of this Act, the following 
15 
terms shall be defined as follows: 
16 
17 
xxx 
18 
1 


1 
q) Indigent -REFERS TO a person who has no visible means of income, or 
2 
whose income is insufficient for the subsistence of his family as identified [By 
3 
tHe] THROUGH THE MEANS TEST PROTOCOL UTILIZED BY DEPARTMENT 
4 
OF SOCIAL WELFARE AND DEVELOPMENT (DSWD), IN ACCORDANCE 
5 
WITH THE [Local Health Insurance Office and based on] specific criteria set by 
6 
the Corporation [in accoroance] AND with the guiding principles set forth in 
7 
Article I of this Act, SUCH AS BUT NOT LIMITED TO THE FOLLOWING: 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
1) INDIVIDUALS / 
FAMILIES CLASSIFIED AS TARGETED 
POOR BASED ON THE POVERTY INCIDENCE BY THE NATIONAL 
STATISTICS AND COORDINATION BOARD (NSCB); 
2) INDIVIDUALS/FAMILIES BELONGING TO THE LOWEST-
INCOME SEGMENT OF THE INFORMAL SECTOR; 
3) BARANGAY' OFFICIALS AND BARANGAY VOLUNTEERS 
SUCH AS BUT NOT LIMITED TO ACCREDITED BARANGA Y 
HEALTH WORKERS (BHWS), BARANGAY NUTRITION SCHOLARS, 
BARANGAY SOCIAL WORKERS (BSW), BARANGAY TANODS, 
AMONG OTHERS; 
4) CHILDREN WHO MAY NOT POSSIBLY BE DECLARED AS 
LEGAL DEPENDENTS SUCH AS BUT NOT LIMITED TO POOR 
CHILDREN UNDER SIX (6) YEARS OF AGE, ABANDONED 
CHILDREN AND ORPHANS BELOW TWENTY ONE (21) YEARS OF 
AGE; 
5) POOR MEMBER OF SENIOR CITIZEN ASSOCIATIONS WHO 
ARE NOT ELIGIBLE UNDER THE LIFETIME MEMBER PROGRAM 
(LMP) OF NHIP OR WHO MAY NOT POSSIBLY BE DECLARED AS 
LEGAL DEPENDENTS; AND 
6) OTHER MEMBERS OF THE LOW-INCOME GROUP OF THE 
POPULATION AS MAY BE DETERMINED BY THE DEPARTMENT 
OF SOCIAL WELFARE AND DEVELOPMENT, IN COORDINATION 
WITH THE PHILIPPINE HEALTH INSURANCE CORPORATION; 
2 


• 
1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
xxx 
SEC. 3. Section 29 of Republic Act No. 7875, as amended, is hereby amended to 
read as follows: 
SEC. 29. Payment for Indigent Contributions. - THE ANNUAL REQUIRED 
PREMIUM contributions for THE COVERAGE OF THE indigent [ffiEmbers] 
FAMILIES IN THE PROGRAM shall be FULLY [partially] subsidized by the 
[local government Hnit where the member resides. The Corporation shall provide 
cOHnterpart financing equal to the LGU's subsidy for indigents: P1'8'eided, That in 
the case of fomth, fifth and si)(th class mHnicipalities, the] National Government 
[FOR INCLUSION] WHICH SHALL BE AUTOMATICALLY APPROPRIATED 
IN THE ANNUAL GENERAL APPROPRIATIONS ACT (GAA) AND 
REMITTED DIRECTLY TO PHILHEALTH. [shall provide Hp to ninety percent 
(90%) of the subsidy for indigents Hntil sHch time that they shall have been 
upgraded to first, second or third class municipalities. The share of the LGUs 
shall be progressively increased Hntil such time that its share hecomes equal to 
that of the National Government.] 
IN CASE OTHER SPONSORS / DONORS WANT TO PARTICIPATE IN 
THE PROGRAM, THEY MAY COVER THE POOREST SEGMENT OF THE 
INFORMAL SECTOR OR MAY ADOPT THE PARTIAL SUBSIDY SCHEME FOR 
THEIR COVERAGE IN THE PROGRAM. THE PREMIUM SHARE OF A 
PARTIALLY SUBSIDIZED MEMBER SHALL BE BASED ON THE ABILITY TO 
PAY 
A PORTION OF THE ANNUAL REQUIRED PREMIUM. 
THE 
CORPORATION SHALL ISSUE THE NECCESARY GUIDELINES FOR THE 
IMPLEMENT A TION OF THIS SCHEME. 
SEC. 4. Implementing Rules and Regulations. - The Department of Health 
(DOH), the Philippine Health Insurance Corporation (PHIC) and the Department of 
Social Welfare and Development (DSWD) 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. 
3 


1 
SEC.S. Separability Clause. • If any provision of this Act is declared 
2 
unconstitutional or invalid, the provisions not affected thereby shall continue to be in 
3 
full force and effect. 
4 
5 
SEC. 6. Repealing Clause . . All laws, including Republic Act No. 7875 as 
6 
amended, decrees, orders, rules and reg\llations or other issuances inconsistent with the 
7 
provisions of this Act are hereby repealed, amended or modified accordingly. 
8 
9 
SEC. 7. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
10 
publication in two (2) national newspapers of general circulation. 
11 
12 
Approved, 
4