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ORIGINAL COPY

Republic of the Philippines
HOUSE OF REPRESENTATIVES

SEP RESEY
Quezon City

“”

SIXTEENTH CONGRESS
First Regular Session

House BillNo.__ 204

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

This bill seeks to develop and expand public health infrastructure and services in
the Philippines, utilizing a portion of the reserve funds of the Philippine Insurance
Corporation, or the Phithealth.

‘Thi a re-filing of the old Senate Bill No. 2653, authored by the Hon. Ralph G.
Recto. Unlike the Senate Bill, however, the poorest municipalities and/or barangays,
without, or without sufficient, public healthcare infrastructure and services, as determined
by the Department of Health, Philhealth and the Department of Interior and Local
Government (DILG), shall enjoy priority in the funding. Also, after its construction, the
operations of such health facilities shall be operated by the Barangay Government under
the joint supervision of the DOH and Phithealth.

It is a conceded fact that there are several gaps in the accessibility of free heath
care. This is the reality, most especially in the far flung countryside, wherein there are
without or even no functional public health care systems and services. There is a grave
need to construct public health care centers and clinics. And, these should be sufficiently
equipped, not just with facilities and equipment, but with manpower, properly trained
health workers.

Yet, the predicament of scarcity of funding by the National Government always
hangs in the air.

Nevertheless, government owned and controlled corporations, like the Philhealth,
(which is really owned by its members) can be sought to provide assistance. Philhealth
reported a net reserve fund of more than P100 Billion. Fifty percent of this amount would
go a long way in developing and expanding to the poorest of the poor Filipinos free
public health infrastructure and services.

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



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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

204
House Bill No.____

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT

DEVELOPING AND EXPANDING PUBLIC HEALTH
INFRASTRUCTURE AND SERVICES, UTILIZING AND
APPROPRIATING A PORTION OF THE RESERVE FUND OF
THE PHILHEALTH FOR THE PURPOSE, AMENDING SECTION
27 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 House of Representatives of the Philippines in Congress
assembled.

SECTION 1. Short Title. - This Act shall be known as the “Public Health
Infrastructure and Services Development and Expansion Act of 2013”.

SECTION 2. Utilization of a Portion of Phithealth Reserve Funds to Fund the
Development and Expansion of Public Health Infrastructure and Services. Section
27 of Republic Act No. 7875, otherwise known as the "National Health Insurance Act of
1995", is hereby amended to read as follows:

“SECTION 27. Reserve Fund. - The Corporation shall set aside a
portion of its accumulated revenues not needed to meet the cost of the
current year’s expenditures as reserve funds: Provided, That the total
amount of reserves shall not exceed a ceiling equivalent to the amount
actuarially estimated for [two] ONE years’ projected Program
expenditures: Provided, further, That whenever actual reserves exceed the

required ceiling at the end of the Corporation's fiscal year, the Program's


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benefits shall be increased or member contributions decreased
prospectively in order to adjust expenditures or revenues to meet the
required ceiling for reserve funds. Such portions of the reserve fund as are
not needed to meet the current expenditure obligations shall be invested in
short-term investments to eam an average annual income at prevailing
fates of interest and shall be known as the "Investment Reserve Fund"
which shall be SET ASIDE TO BE USED FOR THE FOLLOWING
PURPOSES:

1. FIFTY PERCENT (50%) OF THIS AMOUNT SHALL BE
AUTOMATICALLY EARMARKED TO AUGMENT THE

DEPARTMENT OF HEALTH'S (DOH) HEALTH FACILITI

ENHANCEMENT PROGRAM FOR THE NEXT FISCAL YEAR

AND SHALL BE KNOWN AS THE "EXPANDED PUBLIC

HEALTH CARE INFRASTRUCTURE AND SERVICES FUND."
‘THE POOREST MUNICIPALITIES AND/OR BARANGAYS,

WITHOUT, OR WITHOUT SUFFICIE! PUBLIC

HEALTHCARE INFRASTRUCTURE AND SERVICES, AS
DETERMINED BY THE DOH, PHILHEALTH AND THE.
DEPARTMENT OF INTERIOR AND LOCAL GOVERNMENT
(DILG), SHALL ENJOY PRIORITY IN THE FUNDING.

AFTER ITS CONSTRUCTION, THE OPERATIONS OF
SUCH HEALTH FACILITIES SHALL BE OPERATED BY THE
BARANGAY GOVERNMENT UNDER THE JOINT SUPERVISION
OF THE DOH AND PHILHEALTH.

2, THE REMAINING FIFTY PERCENT (50%) SHALL BE
invested in any or all of the following:

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SECTION 3. Separability Clause. - if any provision of this Act, or any part
thereof, is declared unconstitutional, the same shall not affect the validity and effectivity
of the other portions.

SECTION 4. Repealing Clause. - All laws, executive orders, presidential
decrees, proclamations, rules, regulations, issuances and enactments of parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 5. Effectivity. - This Act shall take effect fifteen (15) days from its
complete publication in the Official Gazette of in a newspaper of general circulation in

the Philippines, whichever comes earlier.

APPROVED.