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Nineteenth Congress
First Regular Session
House-BiliNo.    6116
Introduced by:
HON. MARISSA "DEL MAR" MAGSINO
oFwr PARTy[.[ST
EXPLANATORY NOTE
The World  Health  Organization describes  `universal  health  care'  (UHC)  as  a  system  of
protection  where  citizens  can  access  health  services without incurring financial  hardship  by
providing equal opportunity for people to enjoy the highest possible level of health through a
comprehensive   and   integrated   delivery   of  health   services.   Universal   healthcare   can   be
determined by three critical dimensions: who is covered, what services are covered, and how
much of the cost is covered.
In  1995,  Republic  Act  No.  7875  was  passed  instituting  a  National  Health  Insurance
Program (NHIP) for all Filipinos and establishing the Philippine Health Insurance Corporation
(PhilHealth)   for  the  purpose.   Its   lmplementing  Rules  and  Regulations   (PhilHealth  Board
Resolution No. 324-00)  categorized Overseas Filipino Workers  (OFWs) as `individually-paying'
members  lumped  with  employers  and  employees  of international  organizations  and  foreign
governments based in the Philippines, privately sponsored, self-employed persons, and those
separated  from  employment and  who  intend  to  continue  membership.  By  implication,  their
membership is voluntary. In 2013, Republic Act No. 10606 was enacted amending RA 7875. In
this  law,  the  temi  `migrant  workers'  was  first  defined  as  `documented  or  undocumented
Filipinos who are engaged in a remunerated activity in another country of which they are not
citizens. But their status as voluntary members remained.
Then in 2018, Republic Act No.11223, also known as the `Universal  Health Care Law',
was  passed  instituting  universal  health  care  for all  Filipinos  and  prescribing  reforms  in  the
health care system. Under this law, migrant workers were categorized as `direct contributors'
together  with  those  employees  bound  by  employer-employee  relationship,  self-earning  and
professional practitioners. As such, their membership in the NHIP has become mandatory.


Many  Filipinos  set their sight to work abroad  hoping to  explore  greener pastures  to
become   better   providers   for  their   families   and   loved   ones.   With   chronic   poverty   and
unemployment  in  the  country,  the  lure  of better  salaries  and  beneflts  offered  by  overseas
employment is too enticing for many Filipino workers and professionals to look for, or pass up.
And they are willing to face the challenges and difficulties of being away from their families with
all  the  potential  problems  the  separation  would  bring.  This  fact  can  be  confirmed  by  the
growing number of OFWs working in many different countries across the globe.
But working abroad is also a no-freeloader. A prospective OFW has to bear the costs of
processing their working documents which include passports, clearances from law enforcement
agencies,  birth/marriage  certificates,  medical  examinations,  trade  tests  when  required,  and
stamp taxes and authentication fees. In many cases, placement fees are also paid to recruitment
agencies and plane fares are shouldered by OFWs. And upon confirmation of his employment
contract, an OFW is subject to the mandatory payment of his membership fee with the Overseas
Workers Welfare Administration (OWWA) in the amount of USD 25 good for two years. These
necessary expenses force many OFWs to dispose of the little material and financial resources
they have to cover the same, with many compelled to seek for loans despite usurious interests.
Once employed, their expenses do not end there. For one, they are now subject to the
mandatory payment of their PhilHealth contributions.
Data  provided  by  PhilHealth  shows  that  there  are  currently  around  320,000  0FW
PhilHealth members who are actively paying their contributions. However, their database also
shows  there  are  more  than  3  million  OFW  PhilHealth  members.  Hence,  a  significant  rate  of
delinquency. The stand-out reason of OFWs is that they don't actually need PhilHealth coverage
because  they  are  already  provided  with  mandatory  insurance  coverage  as  part  of  their
employment  contract,  not  to  mention  the  medical  benefits  they  are  entitled  to  from  their
contributions to the OWWA Fund. But more importantly, they find the amount of contributions
imposed by existing law too financially burdensome considering the average salaries they earn
from their work abroad.
Based  on  the  schedule  of  premium  contributions  under  RA  11223,  instead  of  the
previously fixed  premium  of P2,400  annually,  OFWs  now must pay PhilHealth  contributions
computed  on  the  basis  of their  salaries.  In  2020,  PhilHealth  increased  the  rate  to  3%  and
henceforth will adjust to increments of 0.5°/o every year until it reaches the 5% limit in 2025.
The income floor is fixed at P10,000 during the 5-year period, while salary ceiling will gradually
increase by Plo,000 each year from P60,000 until it reaches P100,000 in 2025. This means that
if an  OFW has  a  monthly salary of p10,000  or below in  2022,  the  premium  will  be  at P400
monthly or P4,800 yearly. If the salary is 80,000 and above, the premium is at P3,200 monthly
or P38,400 annually.
According to widely accepted ranking of best jobs for OFWs, engineers, doctors, nurses
and IT professionals take home the biggest average monthly income of P 70,000 -80,000.00. On
the other hand, household service workers, manufacturing laborers and construction workers
receive an average monthly salary of P 30,000 -50,000.00.


This bill seeks to provide an incentive to OFWs through a preferential rate of premium
contributions to the National Health Insurance Program uniformly applied for a limited period
of time, and subject to review, to give them the opportunity to save more from their incomes
that  they  can   channel  for  the  benefit  of  their  families   and   enhance  their  prospects   of
establishing their own businesses, especially upon their retirement
Providing a separate and preferential rate of premium contributions to NHIP for OFWs
does  not  violate  the  principle  of  equal  protection  of  the  laws  with  respect  to  the  other
coritrtoutors I memtoeTs Of the program. `The fundaments right Of equal protection is not absolute
but subject to  reasonable classification. The  classification must be  characterized by substantial
distinctions that make real  dijferences  to justify that one  class may  be  treated  and  regulated
diJferently from another. The classification must also be germane to the purpose of the law and
must apply to all those belonging to the same class.' (Tiu vs CA, En Banc, GR No. 127420, January
20,1999)
The substantial distinctions that separate OFWs from the other contributors covered by
NHIP are the seasonal character of their employment abroad ranging from 2-5 years with no
guaranteed renewal, the difficulty of their re-employment past the age of 45, the cross-border
nature  of their employment, the  significance  of their contributions  to the national  economy
through  their  remittances,  and  the  personal  sacrifices  they endure  as  well  as  their  families
resulting from their physical separation from one another.
These distinctions justify the provision of a preferential schedule of rates  of premium
contributions   to   PhilHealth   by   OFWs   that   is   equitable   and   adapted   to   their   unique
circumstances.  Moreover, the  classification  is germane to the purpose  of the  law which  is to
ensure  that OFWs  are guaranteed  and  provided the  ample welfare and  health benefits they
deserve, and applies to all categories of migrant workers as defined in the proposed measure.
It is  noteworthy that the law has given similar special treatments to other sectors  of
society or group of people who also exhibit distinctive characteristics. Senior citizens, persons
with disabilities and solo parents have been provided benefits and privileges on account of their
unique circumstances.
Overseas Filipino workers, also referred to as Filipino migrant workers, are a significant
segment of Philippine labor force accounting for roughly a minimum of 1.5 million jobs at any
given time,  and  sending back an  annual  average  of foreign exchange  remittances  of USD  30
billion,  or  about  10%  of the  Gross  Domestic  Product  (GDP)  of the  country in  a year.  These
remittances help fuel our economy and provide lifelines to thousands of OFW families and their
dependents.  For these  contributions,  they are  often  hailed  as  our  `modem  day heroes'.  It is
about time that they are given what they truly deserve.
For  the  foregoing  reasons,  the  immediate  consideration  and  passage  of this  bill  is
earnestly urged.
#M#RAofGsff
MARISSA ``DEL


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Nineteenth Congress
First Regular Session
House Bill No.
6116
Introduced by:
HON. MARISSA "DEL MAR" MAGSIN0
0Fwr PARI'yllsT
AN ACT
PROVIDING INCENTIVE T0 OVERSEAS FILIPINO WORKERS THROUGH A PREFERENTIAL
RATE OF PREMIUM CONTRIBUTIONS T0 THE NATIONAL HEALTH INSURANCE PROGRAM
Be   it  eracted   by  the   Serrate  and   House   Of  Representative  of the  Philippines   in  Congress
assembled:
Section  1.  TI.tJc - This Act shall  be known as the  ``Overseas FI./I.pr.no  Workers' Ivatr.ona/ Hea/£h
Insurance Program Premium Contributions Incentive Act".
Section 2.   DecJarfltr.oJi o/Po/I.q/ -The State affirms labor, local and overseas, as a primary
social  economic  force  and  shall  protect the  rights  of workers  and  promote  their welfare.  In
particular,  the  State  recognizes  the  vital  contributions  of overseas  Filipino  workers  to  the
national economy, as well as the sacrifices they make while employed or working abroad and
the difficulties endured by their families left at home. Furthermore, the State shall endeavor to
make health and other social services available to all overseas  Filipino workers  at affordable
costs.  With  this  cognizance  and  commitment,  and  in pursuit of social  justice,  the  State  shall
accord  overseas  Filipino  workers  preferential  consideration  in  the  determination  of  their
premium  contributions  to  the  National  Health  Insurance  Program  that  are  just,  affordable,
equitable, viable and tenable.
Section 3.   Definition Of Term - For purposes of this Act, the term `overseas Filipino worker'
roFM?, which shall be interchangeably used with the term `mi.grcmc worker: refers to a person


to  be  engaged,  is  engaged,  or has  been  engaged  in  an  activity for a  consideration  in  a  place
where s/he is not a citizen, including the following individuals:
a)    Land-based oFWs;
b)   Seafarers  and  other sea-based workers, whether aboard  foreign  or domestic vessels,
other than those on a government ship for military or non-commercial purposes or on a
government installation located on high seas or offshore;
c)   OFWs  in  distress who  may be temporarily or permanently suffering from  mental  or
physical     health     problems,     material     and     financial     marginalization,     cultural
discrimination, and physical or emotional abuse;
d)   Other oFWs not previously classified elsewhere.
Section 4.  Progmm Memberichl.p -Notwithstanding the provisions of Republic Act No.11223,
otherwise  known  as  the  `Universal  Health  Care  Act',  all  OFWs  as  defined  in  this  Act  shall
continue as members and direct contributors of the National Health Insurance Program (NHIP)
as administered by the Philippine Health Insurance Corporation (PhilHealth).
Section 5.   Preml.urn Conti-I.butl'ons a/OFWs -   For OFWs as defined in this Act, the rate of
premium contribution shall be 1.5% of the basic monthly salary uniformly applied regardless of
income floor and income ceiling: ProVI.bed, That the payment of premium contribution shall be
based on the OFWs monthly income in the Philippine Peso equivalent: Provl.bed, further, That
the  rate  of  premium  contribution  provided  in  this  section  shall  be  subject  to  review  by
PhilHealth after five (5) years of its implementation and that any increase in the premium rate
consequential to the review shall not be more than 0.25% and must be supported by actual and
verified  inflationary data:  Prov].ded, furthermore, that one-time payment of the contributions
shall  not be  allowed:  ProVI.bed,  finally, That for every increase  in the  rate  of contribution  of
OFWs, PhilHealth shall provide for a corresponding increase in benefits.
Section 6.   Sunset Clause - The provisions of this Act shall remain valid and effective for a
period of ten (10) years from the date of its effectivity.
Section 7.   JmpJementl-rig RurJes and HeguJatl.ons - The Department of Health (DOH) and the
PhilHealth,    in    consultation   with    concerned    non-government   organizations    and    other
stakeholders,   shall   promulgate   the   necessary   rules   and   regulations   for   the   effective
implementation of this Act no later than ninety (90) days upon the effectivity of this Act.
Section  8.   SappJctory E/rect -The provisions  of Republic Act No.  11223,  or the  Universal
Health Care Act, and other laws, shall have suppletory effect to this Act as far as they are not
inconsistent with the provisions of this Act.
Section 9.   Separabi-Ji-ty CJause.  - If any provision of this Act or any part thereof, is declared
unconstitutional, the same shall not affect the validity and effectivity of the other provisions.


Section 10. RepeaJI.ng CJause. - All laws, decrees, rules and regulations, and executive orders
contrary to or inconsistent with this Act, are hereby repealed or modified accordingly.
Section 11. E/rectl.vl.ty. -This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.
Approved.