Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO. 5200

Introduced by
OFW Family Party-List Representative Roy V. Sefieres

EXPLANATORY NOTE

Since the 1970s, Filipinos who work abroad have propped the Philippine economy through their
foreign exchange remittances. Recent figures of the Bangko Sentral ng Pilipinas (BSP) indicated an
all-time high of US$228 billion remittances to the country as of December 2013, majority (77
percent) coming from land-based Overseas Filipino Workers (OFWs), with the remaining 23
percent from sea-based workers,

Economists say that the solid growth of remittances from OFWs remains supportive of
economic activity with cash remittances accounting for 8.4 percent of the country’s gross domestic
product in 2013, Moreover, these cash transfers from OFWs are the biggest source of foreign
exchange for the country, ensuring the ample supply of dollars and other currencies that the
economy needs for doing business with the rest of the world,’ BSP also said that remittances are
also the major driver of domestic consumption, which makes up about two-thirds of GDP. ‘The
country’s economy as measured by GDP grew by 7.2 pecent in 2013 beating government estimates
and the second highest in Asia after China (PDI, 2.18.2014).

As recognition to their contribution to the Philippine economy, the government has
provided incentives to them such as: (@) no tax on income eamed abroad; (b) no travel tax
@I,620.00); (©) no airport terminal fee (550.00); and, more recently, (d) no documentary stamp tax
‘on remittances (P'15.00 per B1,000.00).

‘This bill aims to provide further enhancement by waiving the Philllealth premium
hold Service Abroad
for the first year of deployment considering the numerous fecs seas employment and
their relatively low wages and instead allocating and including budget for the same from our share in
the Sin ‘Tax Reform Act of 2012 and in the General Appropriations Act (GAA) as an alternative.
"This bill also intends to alleviate the stress that first-time OFWs go through when working abroad
being away from family and loved ones by ensuring their famil
year or initial annual PhilHealth premium contribution.

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Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City, Metto Manila

SIXTEENTH CONGRESS
Second Regular Session

HOUSE BILLNo, _5200

Introduced by
OFW Family Party-List Representative Roy V. Sefieres

AN ACT

ENSURING THE HEALTH CARE COVERAGE OF FIRST-TIME OVERSEAS
WORKERS EMPLOYED IN THE DOMESTIC OR HOUSE-HOLD SERVICE ABROAD
BY WAIVING THEIR PHILHEALTH PREMIUM PAYMENTFOR THE FIRST YEAR
OF DEPLOYMENT AND ALLOCATING FUNDS THEREFOR, AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 7875 AS AMENDED BY RA 9241 AND 10606
ALSO KNOWN AS THE NATIONAL HEALTH INSURANCE ACT OF 2013, AND FOR
OTHER PURPOSES

Section 1.Title. ‘This Act shall be known as the “First-Time Overseas Workers’ Exemption
in PhilHealth Premium Payment Act for the First Year.”

Section2. Declaration of Policy. ~ It is the declared policy of the State to uphold the dignity
of its citizens whether in the country or abroad, in general, and Filipino workers in particular. ‘The
State shall afford full protection to labor, local and overseas, organized or unorganized, and promote
full employment and equality of employment opportunities for all. In so doing, the State shall adopt
an integrated and comprehensive approach to health development which shall endeavour to make
tial goods, health and other social services available and affordable to all Filipinos.

Section 3. Definition of Terms. ~ For purposes of this Act, the following terms shall be
defined to mean

a) “Overseas Filipinos” shall refer to migrant workers, other Filipino nationals and their
dependents abroad.

b) “Overseas Pilipino Worker” shall refer to a person who is to be engaged, is engaged or
has been engaged in a remunerated activity in a state of which he or she is not a
citizen or on boaed a vessel navigating the foreign seas other than a government ship
used for military or non-commercial purposes or on an installation located offshore
or on the high seas; to be used interchangeably with migrant worker. (Definition
based on Republic Act No. 10022)

©) “Dependent? shall refer to the legal dependents of the member who are the:
(I)Legitimate spouse who is not a member; 2) the legitimate, legitimated, or legally
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adopted, and illegitimate child who is unmarsied, not gainfully employed, and has
not reached twenty-one (21) years of age, or if over nwenty-one @21) years of age, is
congenitally incapacitated or while still a minor has been permanently incapacitated
and incapable of self-suppost, physically or mentally; and 3) the parents who are
ceceiving regular support from the overseas Filipino worker.

d) ‘Premium contribution” shall refer to the amount paid by or in behalf of a member to the
National Health Insurance Program (NHIP) for coverage, based on salaries or wages in
the case of formal sector employees, and on household earnings and assets, in the case of
self-employed, or on other criteria as may be defined by the Corporation in accordance
with the guiding principles set forth under Republic Act 7875 as amended by RA 9241 and
10606.

©) “Coverage” isthe entitlement of an individual, as a member or as a dependent, to the
benefits of the National Health Insurance Program.

f) “Domestic or Household Service” shall refer to service in the employer’s home which is
usually necessary or desirable for the maintenance and enjoyment thereof and
includes ministering to the personal comfort and convenience of the members of
the employer's household, including services of family drivers. Maids, cooks, yayas
(nannies), drivers and all-around helpers are the primary categories of domestic
helpers.

8) “Domestic Work” shall refer to work performed in or for a houschold or
households; (based on T.O Convention 189)

h) “Domestic Worker” shall refer to any person engaged in domestic work within an
employment relationship. It does not refer to a person who performs domestic
work only occasionally or sporadically and not on an occupational basis.

’) “Parent-Dependent” shall refer to parents who are sixty (60) years old or above, not
otherwise an enrolled member to the National Health Insurance Program.

Section 4. Exemption from Payment of PhilHealth Premium Contributions for the
First-Year for First-time Land-based Overseas Workers Employed in the Domestic or
Household Service. — Considering that first-time domestic or houschold workers need to pay
numerous fees for their overseas employment and considering further their relatively low wages, this
particular category of workers are hereby exempted from paying the first-year or initial annual
PhilHealth premium contribution. ‘The overseas workers concerned and their dependents shall be
covered by social health insurance under the National Health Insurance Program (NHIP) and may
avail of the benefits accorded to all qualified Members of Philllealth. Prior to the lapse of the one-
year PhilHealth coverage, these OFWs should ensure continued payment of their PhilHecalth
premium contribution in accordance with Section 28, Article VII (Financing) of RA 7875 as
amended by RAs 9241 and 10606.

Section5.Appropriations. The amount necessary, as determined by the appropriate agency,
to implement the provisions of this Act shall be included in the allocation under the Sin "Tax Reform
‘Act of 2012 (RA 10351) or as an alternative in the annual General Appropriations Act.

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Section 6.Repealing Clause. All laws, decrees, executive orders, rules and regulations
inconsistent herewith, are hereby repealed or modified accordingly.

Section 7.Separability Clause. If any provision of this Act is held invalid or declared
unconstitutional, the other provisions which are not affected thereby shall remain valid and
subsisting,

Section 8, Effectivity. ‘This Act shall take effect fifteen days after its complete publication
in the Official Gazette or in two (2) newspapers of general circulation, whichever comes first.

Approved,

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