Manila - Health Secretary Ted Herbosa has formally requested President Ferdinand R. Marcos Jr. to suspend the planned premium rate increase of the Philippine Health Insurance Corporation (PhilHealth) for this year.
According to Philippines News Agency, During a media forum at the Manila Hotel, Herbosa revealed that he had sent a letter of recommendation to the President on Tuesday. In his letter, he argued that suspending the premium hike would not significantly affect PhilHealth's financial health. "If I will be asked, I hope it is still suspended because benefits were still provided when it was suspended, in fact, the benefits even increased," Herbosa stated. He also referred to the Universal Health Care (UHC) Law, noting that funds from PAGCOR (Philippine Amusement and Gaming Corporation), PCSO (Philippine Charity Sweepstakes Office), and sin taxes are channeled to PhilHealth to support the benefits of the poor.
The UHC Act of 2019 mandates scheduled increases in PhilHealth contributions starting from a 3 percent hike in 2020, followed by incremental rises reaching 5 percent between 2024 and 2025. However, these increases were put on hold by former President Rodrigo R. Duterte and continued by President Marcos in 2023 due to the Covid-19 pandemic and its socioeconomic impact.
Herbosa recommended that if the President agrees to resume the contributions, they should start from the point of suspension rather than the current 5 percent. "That for me is the logical way to lift suspension. We don't jump to a very high percentage because people will be affected significantly," he explained.
Herbosa acknowledged PhilHealth's need for substantial capital to fulfill its responsibilities but noted that contributions from indirect members have risen over the years, from 30 billion to 80 billion in 2023. He expressed his belief that a suspension is still feasible and emphasized the need for science-based policy decisions. "You do not raise the rate on a whim," he said.
As the chairperson of the PhilHealth Board of Directors, Herbosa announced plans to discuss this issue with board members on January 17.