EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. No. 1977
January
DATE
TJME
NDEX
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
GRANTING THE PRESIDENT OF THE PHILIPPINES THE POWER TO 
SUSPEND THE SCHEDULED INCREASES IN PHILHEALTH PREMIUM 
CONTRIBUTION RATES, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NO. 11223, OTHERWISE KNOWN AS THE UNIVERSAL HEALTH
CARE ACT
EXPLANATORY NOTE
In 2015, the United Nations (UN) marked the Universal Health Coverage day 
with a strong call on countries to invest substantially towards achieving affordable 
health care access in order to improve the lives of people, and contribute significantly 
to the UN Sustainable Development Goals. On that day, then Secretary-General Ban 
Ki-moon stated that, “[o]ur best defenses against any health emergency are strong 
and resilient health systems that serve all people without exposing them to financial 
hardship.”1 In that event, he highlighted that the 2030 Agenda for Sustainable 
Development, adopted by world leaders, envisaged universal health coverage and 
other important measures to ensure that the right to health of all is upheld, and that 
countries strengthen their response to infectious and non-communicable diseases.
Not only are we mandated under our international obligations to ensure the 
health of our people and their affordable access to healthcare, our 1987 Constitution, 
under Article 13, Section 11, mandates the State to adopt an integrated and 
comprehensive approach to health development which shall endeavor to make 
essential goods, health and other social services available to all the people at 
affordable cost.
1 UN News. (12 December 2015) UN calls on global community to ensure access to affordable, quality health 
services for all. Retrieved 06 January 2021, from https://news.un.org/en/story/2015/12/517992-un-calls-global- 
community-ensurc-access-affordable-quality-health-services-all


As complement thereto, the National Health Insurance Program was 
established in Article III of Republic Act (RA.) 7875, or the National Health 
Insurance Act of 1995, as amended by RA. No. 9241 and R.A. No. 10606, to provide 
health insurance coverage and ensure access to quality and affordable health care 
services for all citizens of the Philippines.
In 2019, the landmark legislation providing universal health care for all 
Filipinos, as enacted in RA. No. 11223 or the Universal Health Care Act (UHC Act), 
was coupled with reforms in the health care sector to help ensure access to quality 
and affordable health care. Under the UHC Act, every Filipino citizen shall be 
automatically included into the National Health Insurance Program, with 
membership types simplified into direct and indirect contributors.
Section 10 of the aforementioned law authorizes the Philippine Health 
Insurance Corporation (PhilHealth) to implement annual increases in the premium 
rates of direct contributors until 2024 in order to raise revenue for the 
implementation of the UHC Act. For 2021, the premium rate is scheduled to increase 
to 3.5 percent of the monthly basic salary, from the 2020 rate of 3 percent.
However, several issues hounded the PhilHealth which put to question their 
capability in implementing the UHC Act. The recent Senate investigations into the 
allegations of corruption in PhilHealth revealed that almost 15 billion pesos was lost 
to corruption in the last few years alone. The PhilHealth likewise owes payables 
reaching more than a billion pesos to many hospitals and healthcare institutions, 
including the Philippine Red Cross in spite of infusion of funds from the Bayanihan 
Law.
This has brought the credibility of PhilHealth to an all-time low, which, in turn, 
discourages members to actively and regularly pay their membership dues. Unless 
and until there is a dear showing from PhilHealth that the funds are properly used 
and the corrupt officials are duly punished, it will always be viewed as a corrupt 
institution unfit to manage the UHC funds.
The lockdowns and most stringent protocols brought by the COVID-19 
pandemic likewise crippled many of our citizens’ capacity to pay the premium 
contribution, much less the scheduled increase for this year. The emergency 
responses that were put in place, while aimed at keeping our numbers at bay, have


also caused our economy to shrink into record-levels of recession,2 which resulted in 
a further widening of the gap between rich and poor.
Unemployment rate reached a historic high in April at 17.7 percent, 
translating to 7.3 million unemployed Filipinos.3 While employment levels have since 
picked up, many are in lower quality jobs compared to pre-COVID times, with most 
accepting jobs if only to make ends meet, some even driven to self-employment or 
informal work. Businesses are also struggling, with DTI reporting closures among 26 
percent of surveyed businesses during the lockdown. 4 Given ongoing economic 
hardships, we can expect a difficulty on the part of PhilHealth members and 
employers to comply with the increased premium rates this year. Such increases will 
only further decrease households’ disposable incomes and stifle their consumption.
PhilHealth reports that they expect only 10 percent of Individually Paying 
Program members to pay their premiums for 2021. The projected collection rate for 
Overseas Filipino Workers is even lower at 4 percent this year. These figures point to 
the reality that its members are either incapable or unwilling to pay the high 
premium rates. This representation believes that proceeding with the increase in 
PhilHealth premium contributions at such an inopportune time imposes as an unjust 
burden to the Filipino taxpayer.
This bill amends Section 10 of the UHC Act to grant the President the power to 
suspend or defer the scheduled increases in premium rates provided therein when it 
is in the interest of the public, such as with the ongoing national emergency. In such 
instances, the scheduled increase in a certain year will fall to the year following the 
lifting of the suspension.
These most trying times require from our government and our leaders 
exceptional efforts and emergency responses that will not only secure the health of 
the people, but would likewise cushion and mitigate the worst economic shocks of a 
pandemic of this scale. Universal access to quality and affordable health coverage is 
fundamental to equipping our people with the capability of withstanding the shocks 
brought about by unexpected national health emergencies. It does not only epitomize
2 ABS-CBN News (10 November 2020) Philippine economy shrinks 11.5 pet in third quarter, but 'worst is over1 
saysNEDA. Retrieved from: https://news.abs-cbn.eom/business/ll/10/20/phliippine-economy-shrinks-l 15-pct- 
in-q3-second-worst-quarterly-contraction-on-record. Accessed last 6 January 2020
3 Philippine Statistic Authority Employment Situation in April 2020
4 Magkilat, B. (16 July 2020) Closure of 26% of PH businesses alarms DTI. Retrieved from: 
https://mb.com.ph/2020/07/16/closure-of-26-of-ph-businesses-alarms-dti/. Accessed last 6 January 2020


a strong focus on equity and social justice, it likewise encourages more to trust the 
system.
This is the counterpart bill of the HBN 8300 filed by Rep. Quimbo in the 
House of Representatives.
The expeditious consideration and approval of this measure is earnestly 
sought.
IlEILAM. DELIMA


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE 
S. No. 1977
Introduced by SENATOR LEILA M. DE LIMA
n A Tffr .January 
TIME
KDP X
KILLS
AN ACT
GRANTING THE PRESIDENT OF THE PHILIPPINES THE POWER TO 
SUSPEND THE SCHEDULED INCREASES IN PHILHEALTH PREMIUM 
CONTRIBUTION RATES, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NO. 11223, OTHERWISE KNOWN AS THE UNIVERSAL HEALTH
CARE ACT
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section 1. Power to Suspend Premium Rate Increases. — Section 10 of 
Republic Act No. 11223, otherwise known as the “Universal Health Care Act”, is 
hereby amended to read as follows:
“SEC. 10. Premium Contributions. - For direct contributors, 
premium rates shall be in accordance with the following 
schedule, and monthly floor and ceiling:
XXX
PROVIDED, FURTHER, THAT THE PRESIDENT, IN 
CONSULTATION WITH THE PHILHEALTH BOARD OF 
DIRECTORS, MAY SUSPEND THE IMPLEMENTATION OF 
ANY SCHEDULED INCREASE IN PREMIUM RATES AS 
PROVIDED IN THIS SECTION WHEN PUBLIC INTEREST 
SO REQUIRES, SUCH AS, BUT NOT LIMITED TO, TIMES 
OF NATIONAL EMERGENCIES. SUBSEQUENT


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SCHEDULED INCREASES IN CONTRIBUTIONS 
SHALL
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BE ADJUSTED TO FALL ON THE YEARS FOLLOWING
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THE LIFTING OF THE SUSPENSION.
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xxx"
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Sec. 2. Repealing Clause. - All laws, decrees, letters of instruction, resolutions,
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orders or parts thereof which are inconsistent with the provisions of this Act are
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hereby repealed, modified or amended accordingly.
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Sec. 3. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in two (2) newspapers of general circulation.
Approved,