'. 
,,srmd'l:' 
FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
t@fhrl', of H!!? >r1-n;brij 
OF THE PHILIPPINES 
) 
First Regular Session 
, ) 
SENATE 
'11 
FEB 23 P 4 :09 
S. B. No. 2714 
Introduced by Senator Ralph G. Recto 
. . 
EXPLANATORY NOTE 
The right to medical care is one of the fundamental rights of every human being. It is the 
policy of the State to "adopt an integrated and comprehensive approach to health development 
which shaH endeavor to make essential goods, health and other social services available to all 
people at affordable costs." Consequently, Republic Act No. 7875, otherwise known as National 
Health Insurance Act of 1995 was enacted to "provide health insurance coverage and ensure 
affordable, acceptable, available and accessible health care services for all citizens of the 
Philippines". Unfortunately, fifteen years after the passage ofRA No. 7875, access to health care 
remains to be a problem particularly for the poor and underprivileged. 
This bill amends specific provisions of RA 7875 in order to provide a definite targeting 
strategy in identifying the poorest forty percent (40%) of1he Filipino population through the use 
of a means test set by the national government. This targeting strategy will allow the national 
government to effectively use funds to provide said indigent beneficiaries with health insurance 
coverage. Thus, contributions for the poorest twenty percent (20%) of the population shaH be 
subsidized entirely by the national government. The cdntributions for the next poorest twenty 
percent (20%) of the population shall be subsidized entirely by the local government units or by 
cost sharing mechanism between the LGU and the private sector. 
'. 
This comprehensive approach to health and human development deviates from the 
practice of treating public health as just another area of political patronage. Instead, it recognizes 
the advancement and protection of public health particularly of the poorest of the poor as a key 
measure of governance. Lastly, by strengthening the powers and functions of the Philippine 
Health Insurance Corporation, we shall be better equipped at achieving our goal of universal 
health care coverage. 
Foregoing considered, the approval of this bill is hereby re uested. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
S.B.No. 2714 
, 
) 
) 
) 
Introduced by Senator Ralph G. Recto 
ANACT ' 
'11 
FEB 23 P 4 :09 
y 
PROVIDING A DEFINITE TARGETING STRATEGY IN IDENTIFYING THE POOR, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7875, OTHERWISE KNOWN 
AS "THE NATIONAL HEALTH INSURANCE KCT OF 1995", AS AMENDED, AND 
FOR OTHER PURPOSES 
' 
" 
Be it enacted by the Senate and the House of Representative of the Philippines in 
Congress assembled: 
1 
SECTION 1. Sec. 4, Article II of Republic Act No. 7875, is hereby further amended by 
2 
inserting a new paragraph after paragraph 11), to read as follows: 
3 
"SEC. 4. Definition of Terms. - For the. Purpose of this Act, the following terms 
4 
shall be defined as follows: 
5 
"xxx 
"11) x x x 
6 
7 
MM) 
INFORMAL 
SECTOR -
REFERS 
TO 
THAT 
SECTOR 
8 
CONSISTING OF ECONOMIC UNITS ENGAGED IN THE PRODUCTION OF 
9 
GOODS 
AND 
SERVICES 
WITH 
THE 
PRIMARY 
OBJECTIVE 
OF 
10 
GENERATING 
EMPLOYMENT 
AND', INCOMES 
TO 
THE 
PERSONS 
11 
CONCERNED, 
INCLUDING 
HOUSEHOLD 
UNINCORPORATED 
12 
ENTERPRISES THAT ARE MARKET AND NON-MARKET PRODUCERS OF 
13 
GOODS AS WELL AS MARKET PRODUCERS OF SERVICES. TO THIS 
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SECTOR BELONG, AMONG OTHERS, STREET HAWKERS, MARKET 
15 
VENDORS, PEDICAB AND TRICYCLE DRIVERS, SMALL CONSTRUCTION 
16 
WORKERS AND HOME-BASED INDUSTRIES AND SERVICES." 
17 
SEC. 2. Section 16 of the same Act is hereby f~rther amended to read as follows: 
18 
"Sec. 16. Powers and Functions. - The Corporation shall have the following 
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powers and functions: 
20 
"x x x 
21 
"p) to keep records of the operations of the Corporation and investments of the 
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National Health Insurance Fund; [and) 
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"Q) TO VISIT, ENTER AND INSPECT FACILITIES OF HEALTH CARE 
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PROVIDERS AND EMPLOYERS AND 'TO SECURE COPIES OF THEIR 
" 
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· 
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MEDICAL AND FINANCIAL RECORDS AS WELL AS THAT OF THEIR 
, 
2 
PATIENTS 
OR 
EMPLOYEES, 
WHE.RE 
APPLICABLE, 
WHO 
ARE 
3 
BENEFICIARIES OR MEMBERS OF THE PROGRAM; 
4 
"R) TO ENTER INTO AGREEMENTS WITH NATIONAL AGENCIES 
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AND LOCAL GOVERNMENTS TO REQUIRE PROOF OF PHILHEALTH 
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MEMBERSHIP BEFORE TRANSACTING WITH PRIVATE INDIVIDUALS OR 
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GROUPS; AND 
8 
[q)] S) to perform such other acts as it may deem appropriate for the attainment 
9 
of the objectives of the Corporation and for the proper enforcement of the provisions of 
10 
this Act." 
11 
SEC. 3. Section 18 of the same Act, is hereby amended to read as follows: 
12 
"Sec. 18. The Board of Directors. - (a) Composition - The Corporation shall be 
13 
governed by a Board of Directors hereinafter r~ferred to as the Board, composed of the 
14 
following members: 
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The Secretary of Health; 
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The Secretary of Labor and Employment or his representative; 
17 
[The Secretary of the Interior and Local Government or his Representative] 
18 
The Secretary of Social Welfare and Development or his representative; 
19 
The President of the Corporation; 
20 
A representative of the labor sector; 
21 
A representative of employers; 
22 
The SSS Administrator or his representative; 
23 
The GSIS General Manager or his representative; 
24 
The Vice chairperson for the basic sector of the National Anti-Poverty Commission or his 
25 
representative; 
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A representative of Filipino overseas workers; • 
27 
A representative of the self-employed sector; [and] 
, 
28 
A representative of health care providers to be' endorsed by the national associations of 
29 
health care institutions and medical health professionals[.]; 
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A REPRESENTATIVE OF THE LEAGUE OF PROVINCES OF THE 
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PHILIPPINES; AND 
32 
A REPRESENTATIVE OF THE UNION OF LOCAL AUTHORITIES OF THE 
33 
PHILIPPINES. 
34 
"The Secretary of Health shall be the ex officio Chairperson while the President 
35 
of the Corporation shall be the Vice Chairperson of the Board." 
36 
SEC. 4. Section 28 of the same Act, is hereby amended as follows: 
37 
"Sec. 28 Contributions. - [All members of the Program shall contribute to the 
38 
Fund, in accordance with a reasonable, equitable and progressive contribution schedule to 
39 
be determined by the Corporation on the bas.!s of applicable actuarial studies and in 
2 


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accordance with the following guidelines.1 ALL ENROLLED MEMBERS WHO CAN 
AFFORD TO PAY SHALL CONTRIBUTE, TO THE FUND, IN ACCORDANCE 
WITH A REASONABLE, EQUITABLE AND PROGRESSIVE CONTRIBUTION 
SCHEDULE. 
"a) x x x 
"b)xxx 
"C) CONTRIBUTIONS FROM THE INFORMAL SECTOR SHALL BE BASED 
PRIMARILY ON HOUSEHOLD EARNINGS AND ASSETS. 
"[c)] D)xxx" 
SEC. 5. Section 29 of the same Act is hereby amenJed to read as follows: 
"SEC. 29. Payment for Indigent Contributions. - [Contributions for indigent members 
• 
shall be subsidized partially by the local government unit where the member resides. The 
Corporation shall provide counterpart financing I'qual to the LGU's subsidy for indigents: 
Provided, That in the case of fourth, fifth or sixth class LGU's, the National Government shall 
provide up to ninety percent (90%) of subsidy for indigents for a period not exceeding five (5) 
• 
years. The share of the LGU's shall be progressively increased nntil such time that its share 
becomes equal to that of the National GoveBnment.) CONTRIBUTIONS FOR THE 
POOREST 20% OF THE POPULATION AS IDENTIFIED BY A MEANS TEST 
DETERMINED BY THE DEPARTMENT OF HEALTH (DOH) SHALL BE SUBSIDIZED 
ENTIRELY BY THE NATIONAL GOVERNMENT. ALLOCATION FOR THE 
ENROLLMENT OF THESE INDIGENTS SHALL BE APPROPRIATED IN THE 
GENERAL APPROPRIATIONS ACT AS A SEPARATE LINE ITEM IN THE DOH 
• 
BUDGET AND ADJUSTED ANNUALLY TO COVER FOR PROPORTIONATE 
CHANGE IN THE NUMBER OF THE POOR BASED ON THE NATIONAL 
STATISTICS OFFICE POVERTY STATISTICS. THE NEXT POOREST 20% OF THE 
POPULATION OR THE POOR AS IDENTIFIED BY THE SAME MEANS TEST SHALL 
· 
BE SUBSIDIZED ENTIRELY BY THE LOCAL GOVERNMENT UNITS OR BY COST 
SHARING MECHANISMS BETWEEN THE LOCAL GOVERNMENT AND THE 
PRIVATE SECTOR. 
SEC. 6. Implementing Rules and Regulations' - Tile DOH and the Philippine Health Insurance 
Corporation (PhilHealtll) shall issue the necessary rules and regulations to implement the provisions of 
this Act. 
SEC. 7. Repealing Clause - All laws, issuances or any part thereof inconsistent with this Act are 
hereby repealed or modified accordingly. 
SEC. 8. Effectivity - This Act shall take effect fifteen (15) days after its complete publication in 
the Official Gazette or in at least two (2) national newspapers of general circulation. 
Approved, 
3 
"