Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House Bil No. 27832

Introduced by
COMMITTEE ON PUBLIC ACCOUNTS CHAIRMAN MICHAEL T. DEFENSOR,
COMMITTEE ON GOOD GOVERNMENT AND PUBLIC ACCOUNTABILITY
CHAIRMAN JOSE ANTONIO “KUYA” R. SY-ALVARADO, COMMITTEE ON
PUBLIC ACCOUNTS VICE CHAIRMAN ROBERT ACE S. BARBERS,
COMMITTEE ON GOOD GOVERNMENT AND PUBLIC ACCOUNTABILITY
VICE CHAIRMAN JESUS CRISPIN C. REMULLA, DEPUTY SPEAKER DAN S.
FERNANDEZ, DEPUTY SPEAKER RODANTE D. MARCOLETA, HON. ELPIDIO
F. BARZAGA JR.

EXPLANATORY NOTE.

The 1987 Constitution is replete with provisions emphasizing the importance of health
Article II, Section 15 declares that “The State shall protect and promote the right to health of
the people and instill health consciousness among them. Article XIII, Section 12 adds that it
is the responsibility of 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. There shall be priority for the needs of
the under-privileged, sick, elderly, disabled, women, and children. The State shall endeavor
to provide free medical care to paupers”

‘The landmark Universal Health Care Law aims to give life to the aspiration embodied in the
above Constitutional provisions. It automatically enrolls all Filipino citizens in the Philippine
the

Health Insurance Corporation (Philhealth) and prescribes complementary reforms i
health system. This is a godsend for majority of Filipinos for whom confinement and
preventive medical diagnostic tests and check-ups are beyond financial reach. According to

the National Economic and Development Authority, in 2017, 4.5% of total health payment
came from Filipinos’ own pockets. It cited a 2017 National Demographic and Health Survey

where the average cost of treatment for confined individuals is PHP21,400, only half of



which is shouldered by the Philippine Health Insurance Corporation (Philhealth). This does
not include the cost of medicines or services from external pharmacies and laboratories that
amounts to an average of PhPS,237.'

Preliminary funding estimates for the implementation of the Universal Health Care Act over
the next five years starting in 2020 sees the need for an aggregate state funding of P1437
trillion, starting at P257.5 bil
20242

ion on its first year and gradually rising to P319.4 billion in

The staggering amount needed to improve our health system should be safeguarded in order
to ensure that the funds are used for its intended purposes. It is worrying that Philhealth, as
cone of the primary conduits of the funds to be raised for the UHC law, has a history of
corruption issues. The joint hearing conducted by the Committee on Public Accounts and the
Committee on Good Government and Public Accountability raised issues of corruption and
funding leakages, such as PhilHealth’s overpayment by as much as PhP102 billion to
hospitals under the all case rate system from 2013 to 2018. Thorrsson Montes Keith, who
resigned as PhilHealth anti-fraud legal officer in late July, alleged that members of
PhilHealth’s executive committee “misspent or pocketed” PIS billion. With these
allegations of corruption running into the billions, ordinary Filipinos cannot help but think if
the increase in their taxes and Philhealth premiums are necessary to improve the health
services they receive from their government.

Within the context of a history of systemic corruption, a pandemic that is yet to end, and
lion of the UHC law which will flush Philhealth with a spike in

funding, this makes for an emergency situation that requires drastic but thorough overhauf of

imminent implement
the Philippine Health Insurance Corporation J

Considering the foregoing reasons, the passage of this bill is earnestly requested.

MICHAEL “MjKE” T. DEFENSOR JOSE ANTONIO “KUYA” R. SY-ALVARADO
Chairman, Commutiee on Public Accounts Chairmgh Committee on Good Government and
Publyé Accountability

* nttps//www nedo gov ph/explainer-universa-health-care-law-and-whatit-meansto-ph-development/
> http://www. phistar.com /business/7019/06/11/192532 //tunding-universal-health-care



ROBE!

Vice C

S. BARBERS JESUS CRI
‘Committee on Public Accounts Vice Chairy

and Publi

ELPIDIO F. Sadicn JR.
Representative, 4th District Cavite

INC. REMULLA
1 Committe on Gov! Govermment
ccountability



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
EIGHTEENTH CONGRESS
Second Regular Session

Introduced by
COMMITTEE ON PUBLIC ACCOUNTS CHAIRMAN MICHAEL . DEFENSOR,
COMMITTEE ON GOOD GOVERNMENT AND PUBLIC ACCOUNTABILITY
CHAIRMAN JOSE ANTONIO “KUYA” R. SY-ALVARADO, COMMITTEE ON
PUBLIC ACCOUNTS VICE CHAIRMAN ROBERT ACE S. BARBERS,
COMMITTEE ON GOOD GOVERNMENT AND PUBLIC ACCOUNTABILITY
VICE CHAIRMAN JESUS CRISPIN C. REMULLA, DEPUTY SPEAKER DAN S.
FERNANDEZ, DEPUTY SPEAKER RODANTE D. MARCOLETA, HON. ELPIDIO
F. BARZAGA JR.

AN ACT PRESCRIBING URGENT RELATED MEASURES NECESSARY AND
PROPER TO EFFECTIVELY ADDRESS THE PROBLEMS AND CONCERNS
AFFECTING THE PHILIPPINE HEALTH INSURANCE CORPORATION
(PHILHEALTH)

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

Section. 1. Short Title. — This Act shall be known as the “Philippine Health Insurance
Corporation (Phithealth) Crisis Act of 2020.”

‘Sec, 2. Declaration of Policy. ~ Itis hereby declared the policy of the State to adopt
adequate and effective measures to address the problems and concerns of Philhealth in
pursuit of the protection and promotion of the right to health of all Filipinos as enshrined in
RA 11223 or the Universal Healthcare Act of 2018

Sec. 3. . Negotiated Contracts- Pursuant to the above declared poticy and in the public

interest and whenever it is advantageous to the Government and in order to protect the funds



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of Phithe canse : .
of Phithealth and cleanse the agency of graft and corruption, the President may enter into

negotiated contracts for the following

4. Companies and/or individuals capable of providing actuarial study for Phithealth;

b. Companies and/or individuals who can provide accounting and auditing services,

© Offices and/or individuals who can provide legal services in pursuit of cases
Pending in Philhealth and those that may be filed by Phithealth management;
4. IT services in coordination with DIC’

which will provide a baseline assessment,
study and provision of necessary equipment required in relation to the payment of
benefits and collection of premiums, among others,
. Other services necessary to ensure the effective and efficient function of Philhealth
£. Companies and individuals who shall be awarded contracts under the terms
provided shall have;

1. the proven competence and experience in similar projects

2. the competent key personne! in relation to the task at hand

3. sound financial capacity
All the awarded projects shall be subject to exist
regulations governing negotiated contracts

1g government auditing rules and

Sec. 4 Reorganization of Philhealth- The President is hereby empowered to reorganize
the Philippine Health Insurance Corporation (Philhealth), to make it more effective,
innovative and responsive to its current problems and concerns as regards sustainability of
funds and issues regarding graft and corruption, among others. For this purpose, the President
may abolish or create offices; split, group or merge positions, transfer functions, equipment,
properties, records and personnel, institute drastic cost culling measures and take such other
related actions necessary to carry out the purpose herein declared. Nothing in this Section
shall result in the di
any of its officials or employees who may be phased out by reason of the reorganization shall

’nution of present salaries of the personnel of Phithealth: Provided, That

be entitled (0 such benefits as it may be determined by the Board of Directors of the

Philhealth, with the approval of the President

Sec. 5 Duration of Grant of Powers.- The authority granted to the President under this

‘Act shall subsist, be valid and effective for a period of one (1) year from the effectivity of this



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Act, unless otherwise withdrawn or extended by a Resolution of Congress.

Sec 6. Oversight Committees - The Oversight function of Congress as enshrined in
the Universal Healthcare Law will subsist under this act. The Philippine Health Insurance
Corporation (Phithealth) management shall report to congress every two weeks to update
them on the actions taken by the institution and the development on the concerns above
stated.

The Oversight Committee shall submit periodic reports, evaluations, and

recommendations on the Implementation of this Act.

See. 7 Report to Congress. - The President shall submit a quarterly report to Congress

on the implementation of this Act.

Sec. 8. Repealing Clause. - All laws, decrees, executive orders, and other
presidential issuances which are inconsistent with this Act are hereby repealed, amended or

modified accordingly.

See. 9. Separability Clause. If, for any reason, any section or provisions of this Act
ss held unconstitutional or invalid, the other sections or provisions hereof shall not be affected

thereby

Sec. 10. ffecuvty. ~ This Act take effect fifteen days (15) after its publication in at

feast two @)-—naional— newspapers of general circulation

Approved