Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

504

H. B. No.

Introduced by HONORABLE JUAN EDGARDO “SONNY” M, ANGARA

EXPLANATORY NOTE

The Constitution mandates that the State shall adopt an integrated and comprehensive
approach to health development which would enable all the citizens to afford basic social
services such as health. Even with the passage of the Quality Affordable Medicine Law
however, other costs of commodities continue to increase, thus fewer people have access to
medical care.

The devolution of the health services to the local government units via the Local
Government Code of 1991 was a welcome development to the LGUs. However, the function of
delivering health care services to their people met several setbacks such as financial and
budgetary constraints.

This bill seeks to introduce a cost sharing scheme between LGUs, their residents, and
the Department of Health to institutionalize local health delivery system and solve the problem
with regard to access to medical services. The bill also seeks to establish a Board of Trustees
that shall manage the proposed system.

With this proposed measure, no Filipino will be then denied access to medical and
hospital services In view of the foregoing, immediate passage of this bill is earnestly requested.

JUAN EDGAR
Representative
Lone District, Province of Aurora

“SONNY” M. ANGARA


FIFTEENTH CONGRESS OF THE)
REPUBLIC OF THE PHILIPPINES —)
First Regular Session )

H.B.No,__504

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
ESTABLISHING A COST SHARING SCHEME TO PROVIDE FOR A HOSPITAL
CARE PROGRAM IN LOCAL GOVERNMENT UNITS AND FOR OTHER PURPOSES

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

SECTION 1. Declaration of Policy. - It is the policy of the State to provide for adequate
health services for alll its citizens as mandated by the Constitution. As a basic service, this
function is now a responsibility of Local Government Units (LGUs). As such, all local
government units as mandated in the Local Government Code of 1991 or Republic Act No,
7160 is required to render health services to their constituents through the establishment and
maintenance of health facilities and to provide access to proper medical care possible. Local
government units shall utilize the powers and authority given to them to fulfill this mandate
Including consolidating or coordinating their efforts, services and resources for purposes
commonly beneficial among them and the provision of budgetary allocations for health
programs and services.

SEC. 2. Establishment of a Cost Sharing Scheme for Hospital Care Program. -
Every province or city, in cooperation with the municipalities and barangays, shall establish a
Cost Sharing Scheme for a Hospital Care Program. This scheme shall ensure the access of
their residents to affordable quality and accessible medical care from health facilities and
hospitals. The Hospital Care program will cover all residents of the local government units under
their respective jurisdictions,

‘SEC. 3. The Cost Sharing Scheme. - Every province or city, municipality and barangay
shall appropriate funds for the Hospital Care Program, which shall be placed in Trust Fund for
this purpose. The contribution of each local government shalll be as follows:

City Dwellers ° Municipal Residents
(per person) (per person)
Resident P 30.00 Resident P 30.00
Barangay 15.00 Barangay 15.00

City Government 120.00 Municipal Government 70.00


Dept. of Health 75.00 Provincial Government 50.00
Dept. of Health 75.00

Total P240.00 Total P240.00

The contributions to the Cost Sharing Scheme may be adjusted by the Board of
Trustees who will manage the program according to the needs of its beneficiaries and to
improve the quality of health care services. Provided, however, that any adjustment in the
National Government contribution shall be decided by the Department of Health according to
the needs of the respective local government units and the availability of funds. The trust fund
shall be used solely for the purposes of the Hospital Care Program and the improvement of the
health facilities. The fund shall be deposited into a bank account and managed by the Board of
Trustees. Provided, however, that the fund shall not be invested in any financial instrument or
undertaking that may jeopardize the feasibility and viability of the Hospital Care Program.

SEC. 4. Identification Card System. - There is hereby established an ID System which
shall require the issuance of an identification card to every citizen as proof of their qualification
to the program, and which shall contain the following information: (a) residence address; (b)
date of birth; (c) blood type; (4) thumb mark; (e) civil status; and (f) picture. The identification
card shall be signed by the barangay treasurer, municipal/ city treasurer and municipal/ city
health officer. Every citizen seeking medical attention shall present said ID upon admission to

any hospital. Said ID shall be accepted as proof of identity in all government sectors including
the COMELEC. .

SEC. 5. Creation of the Board of Trustees. - There shall be a Board of Trustees in
every province to manage the Hospital Care Program and the Trust Fund.

a) For provinces, the Board of Trustees shall be composed of the Provincial Governor as
Chairman, Provincial Health Officer as President and Chief Executive Officer, and the following
as members:

President of the Provincial Mayor's League
Chairman of the Provincial Councilor’s League
Chairman of the Provincial Barangay's League
Vice Governor of the Province

Chairman of the Provincial Health Board

Four (4) Representatives from four Non-Government Organizations

) For Highly Urbanized Cities, the Board of Trustees shall be composed of the City Mayor as
Chairman, City Health Officer as President and Chief Executive Officer, and the following as


President of Mayors’ League
Chairman of the Councilors’ League
Chairman of the Barangays’ League
Vice Mayor of the City

Chairman of the City Health Board

Four (4) Representatives from four Non-Government Organizations

‘The Non-Government Organization representatives shall be selected by the Provincial

Governor or City Mayor, as the case may be, from NGOs involved in providing health and social
services operating in the province or city.

The members of the Board shall have a term of three (3) years and shall receive

reasonable allowances as determined by the Board.

‘SEC. 6. Powers and Functions of the Board of Trustees. - The Board of Trustees

shall have the following powers and functions:

a)
b)
°)

co)

9)
h)

)

To administer the Hospital Care Program and manage the Trust Fund;

To formulate and promulgate policies for the sound administration of the program;

To set standards necessary to ensure the quality of hospital service, the roper utilization
of services, viability of the Trust fund and other rules that may be needed for the
successful implementation of the Hospital Care Program;

To formulate the rules and gt

ines for the proper availment of the services of the
Hospital Care Program including limits to the amount of service and medicine that can
bbe availed, amendments to the coverage and other relevant aspects of the program;

To amend the contributions to the cost sharing scheme to make it more responsive to
the needs of the Hospital Care Program and other external factors;

(f) To set the guidelines for the accreditation of the health facilities;

To negotiate and enter into contracts with health care institutions,

health professionals and other juridical or natural persons regarding the financing,
payments, pricing design and administrative systems and procedures necessary for the
delivery of the services of the Hospital Care Program;

To collect, deposit, administer and disburse the Trust fund in accordance with the
provisions of this Act;

To mo

F and inspect the delivery of services to ensure the appropriate delivery of
quality hospital service and make certain the satisfaction of the beneficiaries;

To solicit, receive and manage grants, donations and other forms of assistance;

To organize its office, fix the compensation of and appoint personnel as may be deemed
necessary for the successful implementation of the Hospital Care Program; and


m) To submit a report on the financial condition and status of operations for the Hospital
Care Program to the Sangguniang Panlalawigan or Sangguniang Bayan of all
municipalities. The reports shall likewise be posted in every municipality and made
available to the beneficiaries.

‘SEC. 7. The Hospital Care Program. - There shall be created a Hospital Care Program in
every province or city which shall provide the following services to their residents:
a) In-patient Hospital Care
1, room and board;
2. services of health care professionals;
3. diagnostic, laboratory and other medical examinations;
4. use of surgical or medical equipment and facilities; and

5. prescription drugs and biologicals, subject to limitations set forth.
b) Outpatient Care

41, services of health care professionals;
2. diagnosti

laboratory, and other medical examination services;
3. personal preventive services; and
4. preseri

n drugs and biologicals, subject to limitations set forth.
| The following treatments shall be excluded from the coverage of the Hospital Care Program:

a) eyeglasses and optometric services;
b) dental examinations and dentures;
©) expensive and sophisticated procedures such as CT scans and the like;
4) cosmetic procedures and surgery;
e) non-prescription drug and devices;
f) drug and alcohol abuse and dependency;
i g) other ailments as may be declared by the Board of Trustees.
|

SEC. 8. Accreditation of Health Facilities. -The Board of Trustees shall ensure that

| health facilities shall be available for the Hospital Care Program. All government health facilities
shall participate in the program and in addition, private health facilities shall be accredited to
provide services for the program.

SEC. 9. Enrolment Beneficiaries. - Every barangay shall enroll their residents in the
Hospital Care Program. The barangay captain shall certify that the person to be enrolled is a
resident of the barangay based on official records such as the municipal civil registry,
‘community tax certificates and others.

‘The municipal local treasurers in coordination with the barangay treasurers shall collect the
contributions of the residents and remit them to the provincial or city treasurer.


SEC. 10. The Department of Health. - The DOH shall maintain its subsidy for indigent
patients who are for confinement in specialty hospitals as well as the other hospitals under its
jurisdiction. Said hospitals shall be covered by the cost-sharing scheme.

SEC. 11. SeparabiMy Cause. - If any section or provision of this Act is declared
unconstitutional, the rest of the provisions not affected thereby shall continue to be valid,

SEC. 12. Repealing Clause. - All laws, a8 well as pertinent rules and regulations
thereof, which are inconsistent with the provisions of this Code, are hereby repealed or
amended accordingly

SEC. 13. Effectivity. - This Act shall take effect fifteen (15) days after its complete
Publication in two (2) newspapers of general circulation.

Approved,