SEVENTEENTH CONGRESS OF THE ) .
REPUBLIC OF THE PHILIPPINES _) 2 tee
Third Regular Session )
18 JUL 30 P4 28
SENATE
sano 1896 0 pf

(In substitution of Senate Bill Nos. 1458, 1673 and 1714 taking into
consideration Senate Bill Nos. 60 and House Bill No. 5784)

Prepared and submitted jointly by the Committees on Health and
Demography, Ways and Means, and Finance with Senators Ejercito, Binay,
De Lima, Villar, Angara, Hontiveros, Recto, Villanueva and Gatchalian as
authors thereof

AN ACT
INSTITUTING UNIVERSAL HEALTH CARE FOR ALL FILIPINOS,
PRESCRIBING REFORMS IN THE HEALTH CARE SYSTEM,
APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES

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

CHAPTER 1
GENERAL PROVISIONS

SECTION 1. Short Title. ~ This Act shall be known as the "Universal
Health Care for All Filipinos Act."

SEC. 2. Declaration of Principles & Policies. It is the declared policy of the
State to protect and promote the right to health of every Filipino and instill
health consciousness among them. Towards this end, the State shall adopt:

(a)an integrated and comprehensive approach to ensure that every
Filipino is health literate, provided healthy living conditions, and protected from
hazards and risks that could affect their health;

(b)a healthcare model that provides every Filipino access to a
comprehensive set of cost-effective and quality promotive, preventive, curative,
rehabilitative and palliative health services without causing financial hardship,
Prioritizing the needs of the population who cannot afford such services;



(c) a framework that fosters a whole-of-system, whole-of-government,
and whole-of-society approach in the development, implementation, and
monitoring of health policies, programs and plans; and

(d) a people-oriented approach for the delivery of health services that is
centered on people’s needs and well-being, and respectful of the differences in
culture, values and beliefs.

SEC. 3. General Objectives. - This Act seeks to:

(a) Realize universal health care in the country through a systemic
approach and clear delineation of roles of key agencies and stakeholders towards
better performance in the health system;

(b) Ensure that all Filipinos are guaranteed equitable access to quality and
affordable health goods and services, and protected against financial risk.

SEC. 4. Definition of Terms. — As used in this Act,

a) Amenity refers to any feature of the health service that provides
comfort, convenience, or pleasure. Basic amenities include bed in shared
accommodation, fan ventilation and shared toilet/bath. Additional amenities
include, but not limited to, air conditioning, telephone, television, choice of
meals, among others;

b) Co-insurance refers to a percentage of a medical charge that is paid by
the insured, with the rest paid by the health insurance plan;

) Co-payment refers to a flat fee or predetermined rate paid at point of
service;

d) Direct Contributors refers to those who have capacity to pay
premiums, including, but not limited to, public and private workers and all other
workers rendering services, such as job order contractors; project-based
contractors and the like; owners of micro enterprises; owners of small, medium
and large enterprises; household help; family drivers; migrant workers; self-
earning individuals; professional practitioners; Filipinos with dual citizenship;
naturalized Filipino citizens; and citizens of other countries working or residing in
the Philippines;

e) Emergency refers to an unforeseen combination of circumstances
which calls for immediate action to preserve the life of a person, or to preserve
any part or organ of the human body;

f) Entitlement refers to any singular or lot health services provided to
Filipinos for the purpose of improving health;



9) Health technology refers to the application of organized knowledge
and skills in the form of devices, medicines, vaccines, procedures and systems
developed to solve a health problem and improve quality of lives;

h) Health technology assessment refers to the systematic evaluation of
properties, effects, and/or impacts of health technology. It is a multidisciplinary
Process to evaluate the social, economic, organizational and ethical issues of
a health intervention or health technology;

i) Health care provider refers to any of the following:

i, A health facility, which may be public or private, devoted
primarily to the provision of services for health promotion, prevention,
diagnosis, treatment, rehabilitation and palliation of individuals suffering
from illness, disease, injury, disability, or deformity, or in need of
obstetrical or other medical and nursing care, and which is recognized by
the Department of Health (DOH);

li, A health care professional, who is a doctor of medicine, nurse,
midwife, dentist, or other health care professional or practitioner duly
licensed to practice in the Philippines;

iii, A health maintenance organization (HMO), which is an entity
that provides, offers, or arranges for coverage of designated health
services for its plan holders or members for a fixed prepaid premium;

iv. A community-based health care organization, which is an
association of indigenous members of the community organized for the
purpose of improving the health status of that community through
preventive, promotive and curative health services; or

v. Pharmacies or drug outlets, laboratory and diagnostic clinics,
and manufacturers, distributors and suppliers of pharmaceuticals, medical
equipment and supplies.

3) Indirect Contributors refers to all others not included as direct

contributors;

k) Individual-based services refers to services that can be definitively
traced back to one recipient, has limited effect at a population level and does not
alter the underlying cause of illness, such as ambulatory and inpatient care,
medicines, laboratory tests and procedures, among others;

|) Population-based services refers to services that have population
groups as recipients of the intervention such as health promotion, disease
surveillance, vector control, among others;



m) Primary care refers to  first-contact, accessible, continued,
comprehensive and coordinated care that is accessible at the time of need,
includes a range of services for all presenting conditions and able to coordinate
referrals to other specialists in the service delivery network, when necessary;

n) Service delivery network refers to a group of primary to tertiary care
providers, with the primary care provider acting as the gatekeeper and
coordinator of care within the network. Facilities in the network can be public or
private.

CHAPTER II
FRAMEWORK FOR UNIVERSAL HEALTH CARE (UHC)

SEC. 5. Population Coverage. - Every Filipino citizen shall be entitled to
healthy living, working and schooling conditions and access to comprehensive set
of health services through automatic inclusion into the National Health Insurance
Program.

SEC. 6. Service Coverage.

a) Every Filipino shall be provided access to preventive, promotive,
curative, rehabilitative and palliative health services, delivered either as
Population-based or individual-based services: Provided, That, services covered,
including essential health benefit package and basic amenities shall be
determined through a fair and transparent health technology assessment and
shall include, but not limited to, outpatient and inpatient services for medical,
dental, geriatric, and mental health care; and

b) Every Filipino shall have a primary care provider that would act as the
initial point of contact in the health care delivery system; Provided that, except in
emergency cases, access to higher levels of care shall be decided upon by the
primary care provider acting as the gatekeeper of the health system.

SEC. 7. Financial Coverage. - Health financing shall transition from
unpredictable and potentially catastrophic health spending to predictable
Payments, such as government budget, social health insurance and other
supplementary insurance premium, and regulated co-payments.

The services covered shall be financed through a mix of general and
earmarked taxes, pooled funds from other national government agencies, and
NHIP premium contributions, with clear delineation of payers. In particular:



a) Population-Based Services. - The National Government through the
Department of Health (DOH) and Local Government Units (LGUs) shall finance
the delivery of population-based services.

The DOH and LGUs shall determine population-based services that will be
funded by the national government and by the local government, ensuring that
such funds are harmonized and managed effectively and efficiently.

Furthermore, LGUs shall appropriate fund for health based on the annual
per capital health allocation, which shall be determined by the DOH in
consultation with the National Economic and Development Authority (NEDA).

The national government shall support LGUs in the financing of capital
investments and provision of population based interventions.

b) Individual-Based Services. The National Health Insurance Program
(NHIP) shall finance the essential health benefit package and basic amenities for
individual based services, as performance-driven, closed, and prospective
payments.

Additional amenities for all individual-based services shall be financed
through regulated co-insurance or co-payments.

CHAPTER III
FINANCING

SEC. 8. Financial Management for Philippine Health Insurance Corporation
(PhilHealth)

a) NHIP Membership. - Membership into the NHIP shall be simplified into
two (2) types as defined in Section 4 of this Act:

1) Direct contributors;
2) Indirect contributors.

The Philippine Statistics Authority (PSA) shall provide at no cost to
PhilHealth the civil registration data, which shall be the bases for validating and
regularly updating PhilHealth membership database. PhilHealth may also utilize
available internal revenue data from the Bureau of Internal Revenue subject to
existing laws.

b) Premium Contributions. - For direct contributors, premium ceiling shall
be increased, with premium rates gradually adjusted up to five percent (5%) of
their respective basic monthly salaries or income: Provided, That, during the first
three years from the enactment of this Act, no increase in premium payment
shall be implemented.



For indirect contributors, premium subsidy shall be included annually in
the General Appropriations Act (GAA).

¢) Entitlement to Benefits. - No minimum period or lag time shall be
required to activate entitlement to NHIP benefits. In the case of direct
contributors, failure to pay premiums shall not prevent the enjoyment of NHIP
benefits; Provided that, employer of the direct contributors or the self-employed
members shall be required to pay all missed contributions: Provided, further,
That, PhilHealth may impose to employers or self-employed members up to 3%
interest and surcharges per month based on the total premiums due.

d) NHIP Reserve Fund. — The NHIP’s Investment Reserve shall be invested in
debt securities and corporate bonds issuances that are rated triple “A” or double
“A” by authorized accredited domestic rating agencies; Provided that, the issuing
or assuming entity or its predecessor shall not have defaulted in the payment of
interest on any of its securities and that during each of any three (3) including
the last two (2) of the five (5) fiscal years next preceding the date of acquisition
by the PhilHealth of such bonds, securities or other evidence of indebtedness,
the net earnings of the issuing or assuming institution available for its recurring
expenses, such as amortization of debt discount and rentals for leased
Properties, including interest on funded and unfunded debt, shall have been not
less than one and one quarter (1 ¥%) times the total of the recurring expenses
for such year: Provided, further, That, such investment shall not exceed fifteen
percent (15%) of the Investment Reserve Fund.

€) Administrative Expense. — For purposes of maximum utilization of existing
funds, no more than five percent (5%) of the total premium collection from
direct and indirect contributory members and investment earnings shall be
allotted for administrative cost of implementing the NHIP.

SEC. 9. Pooling Funds for Health. — PhilHealth shall pool and manage all
funds intended to support provision of individual-based services. This includes,
but not limited to, premium contributions and subsidies, other appropriations
earmarked by the government for health operations, and other sources such as
health assistance funds of the Philippine Charity Sweepstakes Office (PCSO) and
the Philippine Amusement and Gaming Corporation (PAGCOR), medical
assistance programs of DOH, administrative fines, donations and grants-in-aid,
and all accruals thereof.



SEC. 10. Purchasing Health Services

a) The DOH shall enter into a contractual agreement with service delivery
networks for the provision of necessary population-based health services. Such
agreement shall serve as the basis for DOH to provide financial and non-financial
support. In areas where population-based health services are inadequate, the
DOH and the LGUs may engage private service delivery networks or providers to
deliver such services.

b) PhilHealth shall enter into contractual agreement with service delivery
networks for the provision of both ambulatory and inpatient services consistent
with the health technology assessment process; Provided that, networks,
whether purely publicly owned, purely privately owned, or mixed, shall abide by
NHIP-set quality standards, limits on co-payments, service and professional fees,
cost accounting requirements and timely, regular submission of minimum
encoded data.

©) PhilHealth shall publish fair contracting rates that are guided by accurate
disease groupings and periodic costing and consultation; develop differential
Payment schemes that give due consideration to service quality, efficiency and
equity; introduce formal fixed co-payment and co-insurance policy; set annual
Payment thresholds for contracted networks without differentiating facility and
professional fees; and institute strong surveillance and audit mechanisms to
ensure network's compliance to contractual obligations.

CHAPTER IV
SERVICE DELIVERY NETWORKS

SEC. 11 Network-based Care. Population and individual-based services
shall be delivered by contracted networks consisting of purely public, private or
mix of public and private entities. All health facilities encompassing primary to
tertiary care within a provincial and city jurisdiction are mandated to form as
many service delivery networks as they may deem appropriate.

SEC. 12. Primary Care as the First and Continuing Point of Contact. — All
Filipinos shall have a designated primary care provider within a service delivery
network, which shall act as a gatekeeper facilitating care within the network and
providing the necessary two-way referral system.

SEC. 13. Minimum Service Capacity of Health Service Delivery Network in
the Province-wide Health System Setting. - Service delivery networks in the
Public province-wide and urban health system must have the minimum service



capacity set by the DOH including, but not limited, to standards for types of
services, number of health care workers per population, health facilities, and
transportation services.

SEC 14. Integration of Local Health Systems into Province-wide and
Urban Health Systems. The public-sector health system at the subnational level
shall be composed of province-wide health systems, which integrates existing
municipal and component city health systems, and urban health systems in
highly urbanized and independent component cities. The Provincial Government
shall exercise administrative and technical supervision over the province-wide
health system and the City Government will exercise the same over the urban
health system.

Where applicable, provinces, highly urbanized cities and independent
component cities may enter into agreements with other provinces, highly
urbanized cities and independent component cities to consolidate or coordinate
their efforts, services and resources for the purposes of this Act.

SEC. 15. Private Health Care Providers and the Service Delivery Network
— Individual, institutional, and community health care providers in the private
sector may constitute themselves into service delivery networks in accordance
with standards set by the DOH. Only networks organized formally shall be
eligible for contracting by PhilHealth to provide individual-based services; or be
contracted by DOH, province-wide or city-wide health systems for population-
based services when or where these are deemed inadequate.

Where applicable, privately owned or led service delivery networks may
enter into cooperation arrangements with other service delivery networks,
whether public or private.

SEC. 16. Income retention. — All publicly-owned or led service delivery
networks shall be authorized to retain and utilize 100% of its health-related
income and pool these into the Special Health Fund: Provided, That, a fixed
percentage of retained health income shall be used as incentives for all public
health workers within the network: Provided, further, That, the DOH shall
determine caps to these incentives to avoid unnecessary distortion, ensure
equity, and provide guidelines for alternative use of excess funds to improve the
services of the network.

SEC. 17. Special Health Fund - The provincial or city government shall
pool and manage, through a special health fund, all resources generated from
the provisions of health services within the province-wide or urban health



system, including but not limited to income generated by health facilities,
PhilHealth reimbursements, and donations, for the exclusive purpose of financing
either population-based or individual-based health services.

CHAPTER V
HUMAN RESOURCES FOR HEALTH

SEC. 18. Competitive Compensation Package. — In order to ensure that
all health professionals, personnel, and staff in the public sector receive
adequate compensation and benefits commensurate to their fundamental role in
society and the amount of work that they render, the DOH in consultation with
the DBM shall work for the increase in salaries and allowances of all health
professionals, personnel and staff to make their compensation and benefits
competitive in accordance with national salary rates, and provide additional
allowances if assigned in underserved or geographically isolated and
disadvantaged areas.

SEC. 19. National Health Workforce Support System. —

a) A National Health Workforce (NHW) Support System shall be created
to support publicly owned or led service delivery networks, ensure provision of
quality health care services, and address human resource needs in service
delivery networks.

b) The NHW Support System shall include fixed term plantilla items that
would be allocated by DOH based on need, adjusted with the burden of disease
and geographic needs, especially of unserved and underserved areas.

SEC. 20. Health Professional Education. —

a) The DOH shall develop programs on Public Health Systems
Management and Health Financing to build capacity of public sector employees
working in the health system. For purposes of this section, the DOH may partner
with the National Institutes of Health and other relevant agencies.

b) The Commission on Higher Education and the DOH shall develop
and plan the expansion of local health-related degree programs and regulate the
number of enrollees in each degree program based on health needs of the
Population. For programs not available locally, they shall develop a systematic
capacity development program, including shifting the focus and learning
outcomes of degree programs to the health needs of the population.



© Expand scholarship grants for health-related undergraduate and
graduate programs, based on the needed cadre of health professionals per
service delivery network.

d) The DOH, in coordination with Philippine Medical Association (PMA)
and allied health professional societies, shall set up a registry of health and allied
health professionals and their location of practice.

SEC. 21. Return of Service with Compensation Package. — All health
professional graduates from state universities and colleges or government-
funded scholarship programs shall be required to serve for at least three (3) full
years, under supervision and with compensation, in an underserved area or in
the public sector. All health professional graduates from private schools shall be
similarly encouraged to serve in these areas.

The DOH shall coordinate with the Commission on Higher Education
(CHED) for the effective implementation of this section.

CHAPTER VI
REGULATION

SEC. 22. Safety and Quality.

a) The DOH shall institute minimum standards for safety and quality of
health goods, facilities, and services, and recognize third party accreditation
mechanisms. PhilHealth shall use these accreditation mechanisms as basis for
granting incentives.

b) The DOH shall be mandated to institute a licensing and regulatory
system for service delivery networks and stand-alone health facilities, including
those providing ambulatory and primary care services, and other modes of
health service provision.

¢) The DOH shall set standards for clinical care through the development,
appraisal, and use of clinical practice guidelines in cooperation with professional
societies and the academia.

SEC. 23. Affordability.

a) All publicly owned or led service delivery networks shall procure drugs
and devices guided by price reference indices, following centrally negotiated
prices, sell them following maximum prescribed mark-ups, and submit to DOH a
price list of all drugs and devices procured and sold by the network.



b) An independent price negotiation board shall be constituted to
negotiate prices on behalf of the DOH. The negotiated price in the framework
contract shall be made available for all public sector institutions.

c) The DOH shall set standards for various types of hospital
accommodation depending on range of amenities, and determine appropriate
proportion of each type of accommodation within service delivery networks.

d) PhilHealth shall set limits on allowable co-payments and co-insurance
Per accommodation type as part of its contracting agreements with each service
delivery network.

e) Health care providers and facilities shall be required to make readily
accessible to the public and submit to DOH pertinent, relevant, and up-to-date
information regarding the prices of medical services and all goods and services
being offered

f) Medical and dental practitioners, including private practitioners, shall
write prescriptions using the International Nonproprietary Name (INN) or generic
name only. No brand names shall be allowed in any part of the prescription.

g) Drug outlets shall be required at all times to carry the generic
equivalent of all drugs in the Primary Care Formulary and shall be required to
provide customers with a list of therapeutic equivalent and their corresponding
prices when fulfilling prescriptions and/or in any transaction.

h) The DOH, PhilHealth, and HMOs shall develop standard policies and
plans that complement the NHIP’s benefit schedule. Provided that, a
coordination mechanism between PhilHealth, PHIs and HMOs shall be set up to
ensure that no benefits shall be unnecessarily dropped.

SEC. 24. Equity. The DOH shall annually update its list of underserved
areas, which shall be the basis for preferential licensing of health facilities and
contracting of health services. The DOH shall also be authorized to determine
appropriate bed capacity and health care professionals of public and private
hospitals based on need.

CHAPTER VII
GOVERNANCE & ACCOUNTABILITY
SEC. 25. Governance of PhilHealth.
a) To strengthen the NHIP in fulfilling its role as the national purchaser
for individual-based services, the PhilHealth Board of Directors is hereby
reconstituted to have a maximum of eleven members, consisting of the



following: (1) four ex-officio members, namely, the Secretary of Health,
Secretary of Social Welfare and Development, Secretary of Budget and
Management, Secretary of Finance; (2) three expert panel members with
expertise in public health, management, and health economics; and (3) four
sectoral panel members, representing the direct contributory group, indirect
contributory group, employers group, and local government

b) The sectoral and expert panel members must be (1) Filipino citizens
and of (2) good moral character. The expert panel must be (1) of recognized
probity and independence and must have distinguished themselves professionally
in public, civic or academic service in any of the following fields: public health,
medicine, economics, law, finance, or business and management, (2) in the
active practice of their professions for at least ten (10) years, and (3) must not
have been candidates for any elective national or local office in the immediately
preceding elections, whether regular or special.

c) The delineation of functions between the Board of Directors and the
executive committee shall be defined by the Governance Commission for GOCCs
(GCG). In addition, the GCG is hereby mandated to evaluate and conduct
organizational development of PhilHealth including personnel planning and
setting of minimum qualifications for corporate officers except those officers
whose qualifications are provided for by law.

d) The President of the Philippines shall appoint the President and CEO of
PhilHealth upon the recommendation of the Board; Provided that, the Board
cannot recommend a President and CEO of PhilHealth unless he is a Filipino
citizen and must have at least ten (10) year experience in the field of health care
financing and corporate management.

SEC. 26. Enabling Evidence-Informed Sectoral Policy and Planning.

a) All public and private, national and local health-related entities shall be
required to submit health and health-related data to the DOH including, but not
limited to, administrative, public health, medical, pharmaceutical and health
financing data; Provided that, the DOH shall create and maintain a databank
which shall serve as the hub of all health data.

b) The DOH shall strengthen its internal analytic capacity, develop
systems for effective health research management, and build sectoral capacity
towards a vibrant ecosystem of research producers, communicators and users.
In cooperation with the DOST, DOH shall develop a cadre of policy systems



researchers by providing training grants in globally-benchmarked institutions and
appropriate incentives to retain them.

c) All health, nutrition and demographic-related administrative and survey
data generated using public funds shall be considered public goods, therefore
cannot be withheld from the public, except if covered by the inventory of
exceptions under applicable laws, and/or release of information requires
excessive cost to generate in which case those who request the data may be
required to pay for the cost of obtaining it.

SEC. 27. Monitoring and Evaluation.

a) The DOH, National Economic Development Authority (NEDA), and the
Philippine Statistical Authority (PSA) shall develop a monitoring and evaluation
framework to validate the accomplishments of the provisions of this Act.

b) The PSA shall conduct the relevant modules of household surveys
annually during the first (10) years of the implementation of this Act, in order to
track progress and thereafter follow its regular schedule.

c) The DOH shall publish annually provincial burden of disease estimates
using internationally validated estimation methods and biennially using actual
public and private sector data from electronic records and disease registries, to
support LGUs in tracking progress of health outcomes.

d) A Performance Management unit shall be established in the DOH to
enable periodic monitoring and evaluation, engagement of third party monitoring
schemes, and publicly reporting of accomplishments.

SEC. 28. Health Impact Assessment.

a) Health Impact Assessment (HIA) shall be institutionalized as a prerequisite
for policies, programs, and projects that are health-related or may have
an impact on the health sector.

b) A multi-agency, multi-expert panel shall be convened to appraise HIA
evaluations, supported by a technical secretariat housed within the DOH.
SEC. 29. Health Technology Assessment.

a) A Health Technology Assessment (HTA) unit composed of independent
multi-expert panel, supported by a technical secretariat with evidence generation
and validation capacity, shall be established within the DOH.

The DOH, in coordination with other government agencies, health
professional organizations, health sector civil society organizations, patients’
organization, and cademe, shall establish guidelines and qualifications for the
nomination process for all HTAC members.



b) The HTA process shall be institutionalized as a fair and transparent
priority setting mechanism that shall be recommendatory to the DOH and
PhilHealth for the development of policies and programs, regulation, and
determination of range of entitlements, provided for under this Act; Provided
that, neither investments on any health technology nor development of any
benefit package shall be made by DOH and PhilHealth without undergoing the
said HTA process; Provided further, that the HTA process shall adhere to the
principles of ethical soundness, inclusiveness and preferential regard for the
underserved, evidence-based and scientific defensibility, transparency and
accountability, efficiency, and enforceability; Provided finally, that HTA unit shall
ensure that its process shall be transparent and the result of its deliberations are
made public.

SEC. 30. Ethics in Public Health Policy and Practice. The implementation
of UHC shall be strengthened by commitment of all stakeholders to abide by
ethical principles in public health practice.

Conflict of interest declaration and management shall be routine in all
policy-determining activities, and applicable to all appointed decision-makers,
policymakers and their staff.

All manufacturers of drugs, medical devices, biological and medical
supplies registered by the FDA shall collect and track all financial relationships
with physicians/healthcare providers and report these to the DOH, which shall
then make this list publicly available.

A public health ethics committee shall be constituted as an advisory body
to the Secretary of Health.

SEC. 31. Health Information System. — All health service providers and
insurers shall within four (4) years, create and maintain information systems
including but not limited to enterprise resource planning, human resource
information system, electronic medical records, and electronic prescription
consistent with DOH standards which shall be electronically uploaded on a
regular basis. The DOH, in consultation with appropriate government and private
agencies, is hereby mandated to develop a single system to be used by all health
service providers.

The DOH shall create and maintain a databank, which shall serve as a hub
of all health transactions/data including but not limited to administrative,
medical, prescription and reimbursement data. These shall be reviewed and
archived and shall be used exclusively for the purpose of generating information


to guide research and policy. Patient privacy and confidentiality shall at all times
be upheld, in accordance with the Data Privacy Act of 2012.

SEC.32. Health Promotion. — The DOH as the overall steward for health
care shall constantly work to achieve better national health outcomes for
Filipinos. It shall strengthen public health care and intensify its efforts in
providing a comprehensive and coordinated approach to health promotion, with
emphasis on mainstreaming of promotive and preventive care.

The DOH shall transform its existing Health Promotion and Communication
Service into a full-fledged Bureau, to be named as the Health Promotion Bureau.

The Health Promotion Bureau shall perform the following:

a) Develop and update the national health promotion policy framework

and action plan. The Framework shall serve as the basis for health

Promotion planning, research and development, monitoring of activities,

and financing to promote healthy behavior;

b)Coordinate the activities of and strengthen working relationships

between government and non-government agencies involved in the

implementation of health promotion programs;

°) Monitor and assess the implementation of laws and policies on

health promotion, including implementation of international conventions;

d) Recommend key development investments in specific sectors

impacting health promotion to ensure the achievement of national health

goals, including but not limited to health consciousness awareness

Programs, policy studies, review of existing legislation, and

implementation of pilot health promotion projects that will form basis for

policy and program recommendations;

)Provide mechanisms of assistance to ensure the mainstreaming of

health and ensuring the development of institutional capabilities for health

mainstreaming in government agencies;

f) Conduct studies, research and development activities towards

drivers of health that will assist in the determination of priority health

promotion strategies and activities;

9) Encourage healthy lifestyles in the community and support

activities involving participation in healthy pursuits;

h) Formulate the necessary education and awareness promotion,

information campaign and social marketing strategies;



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i) Harmonize and coordinate all health promotion programs and
activities in the Philippines.

CHAPTER VIII
PENAL PROVISIONS

SEC. 33. Penal Provisions. A violation by the following persons shall
suffer the corresponding penalties as herein provided:

a) Contracted Health Care Provider— Any contracted health care provider
who commits an unethical act, abuses the authority vested upon him or her, or
Perform a fraudulent act as defined in SEC. 4 of this Act shall be punished by a
fine of two hundred thousand pesos (P200,000.00) for each count, or suspension
of contract up to three (3) months or the remaining period of accreditation
whichever is shorter, or both, at the discretion of the Corporation taking into
consideration the gravity of the offense. If the health care provider is a juridical
person, its officers and employees or other representatives found to be
responsible, who acted negligently or with intent, or have directly or indirectly
caused the commission of the violation, shall be liable. Recidivists may no longer
be contracted as participants of the Program.

b) Member - Any member who commits any violation of this Act or
knowingly and deliberately cooperates or agrees, whether explicitly or implicitly,
to the commission of a violation by a contracted health care provider or
employer as defined in this section, including the filing of a fraudulent claim for
benefits or entitlement under this Act, shall be punished by a fine of fifty
thousand pesos (P50,000.00) for each count or suspension from availment of the
benefits of the Program for not less than three (3) months but not more than six
(6) months, or both, at the discretion of the Corporation.

c) Employer —

i. Failure or Refusal to Register, Deduct or Remit the Contributions —
Any employer who deliberately or through inexcusable negligence,
fails or refuses to register employees, regardless of their
employment status, accurately and timely deduct contributions
from the employee's compensation or to accurately and timely
remit or submit the report of the same to the Corporation shall be
Punished with a fine of fifty thousand pesos (P50,000.00) for
every count of violation per affected employee, or imprisonment of



not less than six (6) months but not more than one (1) year, or
both such fine and imprisonment, at the discretion of the court.
Any employer or any officer authorized to collect
contributions under this Act who, after collecting or deducting the
monthly contributions from the employee’s compensation, fails or
refuses for whatever reason to accurately and timely remit the
contributions to the Corporation within thirty (30) days from due
date shall be presumed prima facie, to have misappropriated the
same and is obligated to hold the same in trust for and in behalf of
the employees and the Corporation, and is immediately obligated
to return or remit the amount. If the employer is a juridical
person, its officers and employees or other representatives found
to be responsible, whether they acted negligently or with intent, or
have directly or indirectly caused the commission of the violation,
shall be liable.
Unlawful Deductions — Any employer or officer who shall deduct
directly or indirectly from the compensation of the covered
employees or otherwise recover from them the employer’s own
contribution on behalf of such employees shall be punished with a
fine of five thousand pesos (P5,000.00) multiplied by the total
number of affected employees or imprisonment of not less than
six (6) months but not more than one (1) year, or both such fine
and imprisonment, at the discretion of the court.If the unlawful
deduction is committed by an association, partnership, corporation
or any other institution, its managing directors or partners or
president or general manager, or other persons responsible for the
Commission of the act shall be liable for the penalties provided for
in this Act.
Misappropriation of Funds by Employees of the Corporation —
Any employee who, without prior authority or contrary to the
provisions of this Act or its implementing rules and regulations,
wrongfully receives or keeps funds or property payable or
deliverable to the Corporation, and who shall appropriate and
apply such fund or property for their own personal use, or shall
willingly or negligently consent either expressly or implicitly to the
misappropriation of funds or property without objecting to the


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same and promptly reporting the matter to proper authority, shall
be liable for misappropriation of funds under this Act and shall be
Punished with a fine equivalent to triple the amount
misappropriated per count and suspension for three (3) months
without pay.

iv. Other Violations - Other violations of the provisions of this Act or
of the rules and regulations promulgated by the Corporation shall
be punished with a fine of not less than Five thousand pesos
(P5,000.00) but not more than Twenty thousand pesos
(P20,000.00).

All other violations involving funds of the Corporation shall be governed by
the applicable provisions of the Revised Penal Code or other laws, taking into
consideration the rules on collection, remittances, and investment of funds as
may be promulgated by the Corporation.

The Corporation may enumerate circumstances that will mitigate or
aggravate the liability of the offender or erring health care provider, member or
employer.

Despite the cessation of operation by a health care provider or termination
of practice of an independent health care professional while the complaint is
being heard, the proceeding against them shall continue until the resolution of
the case.

CHAPTER VIII
APPROPRIATIONS

SEC. 34. Appropriations. — The funds requirements to implement this Act
shall be earmarked and sourced from the following:

a) Total sin tax collections as provided for in Republic Act (R.A.) No.

10351 of the Sin Tax Law; Provided, that the mandated earmarks as

provided for in R.A. Nos. 7171 and 8240 shall be retained;

b) The 50% national government share from the income of the Philippine

Gaming Corporation (PAGCOR) as provided for in Presidential Decree No.

1869, as amended of the PAGCOR Charter;

c) The Charity Fund of the Philippine Charity and Sweepstakes Office

(PCSO) as provided for R.A. No. 1169, as amended of the PCSO Charter;

and

d) Premium contributions of members.



The amount necessary to implement the provisions of this Act shall be
included in the General Appropriations Act. In addition, the DOH, in coordination
with PhilHealth, may request Congress to appropriate supplemental funding to
meet targeted milestones of this Act.

CHAPTER IX
MISCELLANEOUS PROVISIONS

SEC. 35. Oversight Provision. - There is hereby created a Joint
Congressional Oversight Committee on Universal Health Care to conduct a
regular review of the implementation of this Act which shall entail a systematic
evaluation of the performance, impact or accomplishments of this Act and the
Various agencies invoived in realizing universal health coverage, particularly with
respect to their roles and functions.

The Joint Congressional Oversight Committee shall be jointly chaired by
the Chairpersons of the Senate Committee on Health and Demography and the
House of Representatives Committee on Health. It shall be composed of five (5)
members from the Senate and five (5) members from the House of
Representatives, to be appointed by the Senate President and the Speaker of the
House of Representatives, respectively.

SEC. 36. Transitory Provision. -- Within thirty (30) days from the
effectivity of this Act, the President of the Philippines shall appoint the new
members of the Board and the President of the Corporation. The existing board
of directors shall serve in a hold-over capacity until a full and permanent board
of directors of the Corporation is constituted and functioning.

All officers and personnel of Philippine Health Insurance Corporation
(PhilHealth), except members of the Board who shall be governed by the first
Paragraph of this section, shall be absorbed by the Corporation and shall
continue to perform their duties and responsibilities and receive their
Corresponding salaries and benefits. The approval of this Act shall not cause any
demotion in rank or diminution of salary, benefits and other privileges of the
incumbent personnel of PhilHealth: Provided, That qualified officers and
Personnel may voluntarily elect for retirement or separation from service and
shall be entitled to the benefits under existing laws: Provided, further, That the
GCG in coordination with DOH, PhilHealth and DBM shall not be prohibited to
reorganize, rationalize and conduct personnel planning to implement the
provisions of this Act in accordance with existing laws.



SEC. 37. Interpretation. - Any doubt in the interpretation of any
provision of this Act shall be liberally interpreted in a manner mindful of the
rights and interests of every Filipino to quality, accessible and affordable health
care.

SEC. 38. Separability Clause. — If any part or provision of this Act is
held invalid or unconstitutional, the remaining parts or provisions not affected
shall remain in full force and effect.

SEC. 39. Applicability and Repealing Clause. ~ The provisions of
Republic Act No. 7875 as amended by Republic Act No. 9241 and Republic Act
No, 10606, otherwise known as the “National Health Insurance Act of 2013” shall
continue to have full force and effect except insofar as they are inconsistent with
this Act.

All other laws, decrees, executive orders and rules and regulations
contrary to or inconsistent with the provisions of this Act are hereby repealed or
amended accordingly.

SEC. 40. Implementing Rules and Regulations. - The DOH and the
PhilHealth, in consultation and coordination with appropriate national
government agencies, civil society organizations, non-government organizations,
private sector representatives, and other stakeholders, shall promulgate the
necessary rules and regulations for the effective implementation of this Act no
later than one hundred and eighty (180) days upon the effectivity of this Act.

SEC. 41. Effectivity. — This Act shall take effect fifteen (15) days after its
Publication in the Official Gazette or in any newspaper of general circulation.

Approved,

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