Republic of the Philippines 17
HOUSE OF REPRESENTATIVES QCT 201

Quezon City se

FIFTEENTH CONGRESS
Second Regular Session

H.B.No.__ 8650

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

We are all aware of the huge impact on the Philippines of our Overseas Filipino Wotkers
(OFWs), especially on the economy because of their remittances. Without the OFWs’
remittances, the Philippine economy might have sunk a long time ago.

As of the year 2011, there are approximately eleven (11) million Filipinos overseas, comprising
about eleven percent (11%) of the total population of the Philippines. 45% or 4.32 Million of
these are overseas contract workers including seafarers (350,000). The rest are immigrants (47%)
and irregulars (less than 2M).

Remittances sent by OFWs to the Philippines significantly contribute to the country’s economy
with a value of more than US 18 billion in 2011, higher than in previous years. ‘This makes the
country the fourth largest recipient of remittances with India, China, and Mexico on the top list.
OFW remittances represent around 13.5 % of the country’s Gross Domestic Product (GDP), the
largest in proportion to the domestic economy among the four countries. Indeed, remittances
have been continuously resilient, providing cushion against external shocks

Considering their numeric significance and the impact of remittances to the economy, it is of
paramount importance that the Philippine Health Insurance Corporation, in pursuit of its
mandate to provide social health insurance coverage to all Filipinos, take necessary steps, in
ensuring that our countrymen currently based abroad - whether permanent, temporary or
irregular, including their families/ dependents left behind, are accorded with appropriate
relevant and affordable health care services.

The National Health Insurance program is the country’s most strategic resource mobilization
scheme for health. The Philippine Health Insurance Corporation (PhilHealth) continuously
faces extreme difficulties in covering the OFWs, with less than a billion pesos premium
collection as well as benefit payments made last year and the years before that.

At present, the Overseas Workers Program caters only to land-based holders of job contracts
and whose residence abroad are temporary in nature. Excluded in the Program are immigrants
and Dual Citizens, Seafarers and Irregulars, all of which all under the Voluntary membership
category. There are only around 900,000 contributing members under the OWP (Premium


Collection for 2011 is less than PhP 800 Million) and this is equivalent to only 40% of the 2.5 M
total registered members (inclusive of those who may have transferred to other Program
categories. Majority of them only pay their premium for the initial year, because it is a
requirement prior to deployment). This applies to the OWP only, as membership of other
Filipinos overseas are not being monitored.

This bill amends further Republic Act. No. 8042, the "Migrant Workers and Overseas Filipinos
Act of 1995", It declares as State policy the provision of a mechanism for covering all Overseas
Filipino Workers, including all other Filipino citizens overseas, and their families and
dependents under the National Health Insurance Program (NHIP), as administered, supervised
and operated by the Philippine Health Insurance Corporation or Philhealth, in a cost-effective
and administratively-efficient manner.

The bill mandates that the National Health Insurance Program (NHIP), administered,
supervised and operated by Philhealth shall provide all OFWs, including all other Filipino
Citizens Overseas (FCOs), and their families and dependents - with a mechanism to gain
financial access to health services, in combination with other government health programs.

Aside from giving highest priority to achieving coverage of the entire Philippine population
within the Philippines, NHIP shall also include in its highest priority the achieving of coverage
of the entire worldwide population of OFWs, including all other FCOs, and their families and
dependents, with at least a basic minimum package of health insurance benefits, All OFWs,
including FCOs, and their families and dependents shall be required to enroll in the Program to
avoid adverse selection and social inequality. The Program builds on existing Overseas Filipino
community initiatives for its organization and human resource requirements.

The cost or expenses for the coverage or the entitlement of an OFW, FCO, OFW family member,
or FCO family member - as a member, beneficiary or as a dependent - to the benefits of the
Program, shall come from a percentage of the remittance fee being charged by remittance
service providers - including, banks, telecommunication companies with remittance service,
and all other companies engaged in remittance service for OFWs and FCOs. The service
providers shall remit to the Bangko Sentral ng Pilipinas (BSP) within a reasonable time, and
which shall then be remitted by the BSP to Philhealth, also within a reasonable period.

All Filipinos overseas or abroad, wherever they may be, shall be covered as long as they are
still citizens of the Philippines, regardless of whether or not they are permanent residents or
immigrants in a foreign country. All Filipinos with dual citizenship are also covered, provided
that one (1) of the said dual citizenship is Filipino citizenship;

This proposed measure will be of tremendous benefit, both to our country and to OFWs and
their families. For these reasons, the approval of this bill is earnestly sought.

oe A al
JUAN EDGARI “SONNY” M. ANGARA
Representative
Lone District, Province of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES _)
Second Regular Session )

H.B.No.__6650

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT

AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT
WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED, PROVIDING FOR
A HEALTH INSURANCE PROGRAM FOR ALL OVERSEAS FILIPINO WORKERS,
INCLUDING ALL OTHER FILIPINO CITIZENS OVERSEAS, AND THEIR FAMILIES AND
DEPENDENTS UNDER THE PHILIPPINE HEALTH INSURANCE CORPORATION: OR
PHILHEALTH AND THE MECHANISMS FOR ITS FUNDING AND IMPLEMENTATION,
AND FOR OTHER PURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress assembled:
Section 1. Section 2 of Republic Act. No. 8042, as amended, otherwise known as the "Migrant

Workers and Overseas Filipinos Act of 1995," is hereby amended by adding a new paragraph -
Paragraph (j) - under the said Section to read as follows:

“(j) IT IS LIKEWISE HEREBY DECLARED AS A POLICY OF THE STATE TO
PROVIDE A MECHANISM FOR COVERING ALL OVERSEAS FILIPINO
WORKERS, INCLUDING ALL OTHER FILIPINO CITIZENS OVERSEAS, AND
THEIR FAMILIES AND DEPENDENTS UNDER THE NATIONAL HEALTH
INSURANCE PROGRAM (NHIP), AS ADMINISTERED, SUPERVISED AND
OPERATED BY THE PHILIPPINE HEALTH INSURANCE CORPORATION OR
PHILHEALTH, IN A COST-EFFECTIVE AND ADMINISTRATIVELY-
EFFICIENT MANNER.”

Section 2. A new Section - Section 22-A - of Republic Act No. 8042, as amended, is hereby
added to read as follows:

"SECTION 22-A. HEALTH SERVICES FOR ALL OFWS, INCLUDING ALL
OTHER FILIPINO CITIZENS OVERSEAS, AND THEIR FAMILIES AND
DEPENDENTS. - THE FOLLOWING SHALL GOVERN THE ESTABLISHMENT
AND IMPLEMENTATION OF THE HEALTH INSURANCE PROGRAM FOR
ALL OVERSEAS FILIPINO WORKERS, INCLUDING ALL OTHER FILIPINO
CITIZENS OVERSEAS, AND THEIR FAMILIES AND DEPENDENTS UNDER
THE NATIONAL HEALTH INSURANCE PROGRAM (NHIP) AS
ADMINISTERED, SUPERVISED AND OPERATED BY THE PHILIPPINE
HEALTH INSURANCE CORPORATION OR PHILHEALTH:

“(A) THE PROGRAM. THE NATIONAL HEALTH INSURANCE PROGRAM
(NHIP) OF THE GOVERNMENT, HEREINAFTER REFERRED TO AS THE
“PROGRAM,” WHICH IS BEING ADMINISTERED, SUPERVISED AND
OPERATED BY THE PHILIPPINE HEALTH INSURANCE CORPORATION


OR PHILHEALTH, SHALL ALSO PROVIDE - ALL OVERSEAS FILIPINO
WORKERS (OFWS), INCLUDING ALL OTHER FILIPINO CITIZENS
OVERSEAS (FCOS), AND THEIR FAMILIES AND DEPENDENTS - WITH A
MECHANISM TO GAIN FINANCIAL ACCESS TO HEALTH SERVICES, IN
COMBINATION WITH OTHER GOVERNMENT HEALTH
PROGRAMS. HENCEFORTH, ASIDE FROM GIVING THE HIGHEST
PRIORITY TO ACHIEVING COVERAGE OF THE ENTIRE PHILIPPINE
POPULATION WITHIN THE PHILIPPINES, THE NHIP SHALL ALSO
INCLUDE IN ITS HIGHEST PRIORITY THE ACHIEVING OF COVERAGE
OF THE ENTIRE WORLDWIDE POPULATION OF OFWS, INCLUDING ALL
OTHER FCOS, AND THEIR FAMILIES AND DEPENDENTS, WITH AT
LEAST A BASIC MINIMUM PACKAGE OF HEALTH INSURANCE
BENEFITS. ALL OFWS, INCLUDING ALL OTHER FCOS, AND THEIR
FAMILIES AND DEPENDENTS SHALL BE REQUIRED TO ENROLL IN THE
PROGRAM IN ORDER TO AVOID ADVERSE SELECTION AND SOCIAL
INEQUALITY. THE PROGRAM SHALL BUILD ON EXISTING OVERSEAS
FILIPINO COMMUNITY INITIATIVES FOR ITS ORGANIZATION AND
HUMAN RESOURCE REQUIREMENTS;

“(B) PREMIUM. THE COST OR EXPENSES FOR THE COVERAGE OR THE
ENTITLEMENT OF AN OFW, FCO, OFW FAMILY MEMBER, OR FCO
FAMILY MEMBER - AS A MEMBER, BENEFICIARY OR AS A DEPENDENT -
TO THE BENEFITS OF THE PROGRAM, SHALL COME FROM A
PERCENTAGE OF THE REMITTANCE FEE BEING CHARGED BY
REMITTANCE SERVICE PROVIDERS - INCLUDING, BUT NOT LIMITED
TO, BANKS, TELECOMMUNICATION COMPANIES WITH REMITTANCE
SERVICE, AND ALL OTHER COMPANIES ENGAGED IN REMITTANCE
SERVICE FOR OFWS AND FCOS - WHICH SUCH ENTITIES OR SERVICE
PROVIDERS SHALL REMIT TO THE BANGKO SENTRAL NG PILIPINAS
(BSP) WITHIN A REASONABLE TIME PERIOD, AND WHICH SHALL THEN.
BE REMITTED BY THE BSP TO THE PHILIPPINE HEALTH INSURANCE
CORPORATION OR PHILHEALTH, LIKEWISE WITHIN A REASONABLE
TIME PERIOD AS MAY BE PROVIDED UNDER THE IMPLEMENTING
RULES AND REGULATIONS OF THE PROVISIONS OF THIS SECTION;

“(C) DEVOLUTION. THE PROVISIONS OF THIS SECTION SHALL BE
IMPLEMENTED LIKEWISE IN CONSULTATION WITH THE LOCAL
GOVERNMENT UNITS (LGUS), ESPECIALLY IN RELATION TO THE
HEALTH NEEDS OF THE FAMILIES OF OFWS, INCLUDING THE FAMILIES
OF ALL OTHER FCOS, WHO ARE RESIDING IN DIFFERENT LOCALITIES
IN THE PHILIPPINES, SUBJECT TO THE OVER-ALL POLICY DIRECTIONS
SET BY THE NATIONAL GOVERNMENT;

“(D) COVERAGE. ALL FILIPINOS OVERSEAS OR ABROAD, WHEREVER
THEY MAY BE, SHALL BE COVERED BY THE PROVISIONS OF THIS
SECTION AS LONG AS THEY ARE STILL CITIZENS OF THE REPUBLIC OF
THE PHILIPPINES, REGARDLESS OF WHETHER OR NOT THEY ARE
PERMANENT RESIDENTS OR IMMIGRANTS IN A_ FOREIGN
COUNTRY. ALL FILIPINOS WITH DUAL CITIZENSHIP ARE ALSO
COVERED BY THE PROVISIONS OF THIS SECTION, PROVIDED THAT
ONE (1) OF THE SAID DUAL CITIZENSHIP IS FILIPINO CITIZENSHIP;

“(E) APPLICABILITY OF THE NATIONAL HEALTH INSURANCE
ACT. ALL THE PROVISIONS OF THE NATIONAL HEALTH INSURANCE


ACT (NHIA) OR REPUBLIC ACT NO. 7875, AS AMENDED, OTHERWISE
KNOWN AS THE PHILHEALTH LAW, WHICH ARE NOT INCONSISTENT
WITH THE PROVISIONS OF THIS SECTION SHALL LIKEWISE BE
APPLICABLE TO THE PROVISIONS OF THIS SECTION. THE PROVISIONS
OF THE NHIA, AS AMENDED, WHICH NEED TO BE AMENDED OR
ADJUSTED IN ORDER TO MAKE THEM MORE SUITED OR APPROPRIATE
FOR IMPLEMENTATION AMONG OFWS, ALL OTHER FCOS, AND THEIR
FAMILIES AND DEPENDENTS - INCLUDING, BUT NOT LIMITED TO, THE
DEFINITION OF A “DEPENDENT” - SHALL BE AMENDED OR ADJUSTED
ACCORDINGLY UNDER THE IMPLEMENTING RULES AND
REGULATIONS OF THE PROVISIONS OF THIS SECTION. PROVIDED,
HOWEVER, THAT THE SAID PROVISIONS OF THE NHIA, AS AMENDED,
WHICH SHALL BE AMENDED OR ADJUSTED UNDER THE
IMPLEMENTING RULES AND REGULATIONS OF THE PROVISIONS OF
THIS SECTION, SHALL ONLY BE APPLICABLE TO OFWS, ALL OTHER
FCOS, AND THEIR FAMILIES AND DEPENDENTS.”

Section 3. Implementing Rules and Regulations. - The departments and agencies charged with
carrying out the provisions of this Act, in consultation with the Senate Committee on Labor and
Employment and the House of Representatives Committee on Overseas Workers Affairs, shall,
within sixty (60) days after the effectivity of this Act, formulate the necessary rules and
regulations for its effective implementation.

Section 4. Funding. - The departments, agencies, instrumentalities, bureaus, offices and
government-owned and controlled corporations charged with carrying out the provisions of
this Act shall include in their respective programs the implementation of this Act, the funding,
of which shalll be included in the General Appropriations Act.

Section 5. Separability Clause. - If, for any reason, any portion of this Act is declared
unconstitutional or invalid, the same shall not affect the validity of the other provisions not
affected thereby.

Section 6. Repealing Clause. - All laws, decrees, executive orders, issuances, rules and regulations
or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified

accordingly.

Section 7. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at deast
two (2) newspapers of general circulation.

Approved,