Government decision on PhilHealth premium hike out soon

MANILA, Philippines —  The government will come out with a decision on whether or not to push through with the Philippine Health Insurance Corp. (PhilHealth)’s premium contribution rate increase “very soon,” President Marcos said yesterday.

A cost-benefit analysis is still being conducted to ensure that the five-percent increase in contribution will also provide additional benefits to all members, according to Marcos.

“It’s under review. What we are trying to determine is that if we are going to increase the contribution from four percent to five percent, how do we benefit from that? It’s really a cost-benefit analysis,” he said before leaving for Canberra, Australia.

“We’re still under study, but we’ll come to a conclusion very, very soon,” he added.

The President noted that the state insurer has expanded its benefits over the years, including the increase in dialysis support to three times a week for outpatients or equivalent to full weekly coverage.

He also mentioned the increase in PhilHealth’s coverage for “Case Z conditions” such as cancer.

“So, if there are benefits, if we can justify the increase, then we’ll do it, but if not, we won’t. It’s that simple. It’s just a very straightforward cost-benefit analysis,” he said.

Republic Act 1123 or the Universal Health Care (UHC) Act mandates the PhilHealth contribution rate to be raised by 0.5 percent annually beginning in 2021 and continuing until it reaches five percent from 2024 to 2025.

The state insurer suspended the increase in 2021 due to the COVID-19 pandemic.

Last year, Marcos ordered the deferral of scheduled hike in the PhilHealth premium rate from four percent to 4.5 percent and income ceiling from P80,000 to P90,000, citing “socioeconomic challenges” and “difficult times.”

PhilHealth president and chief executive officer Emmanuel Ledesma Jr. recently said the hike to five percent in premium contributions would be sustained, as the Office of the President expressed through a letter that “they pose no objection” to the increase.

Health Secretary Ted Herbosa proposed last month the suspension of the premium rate hike, saying this would not affect the state insurer’s financial standing.

The premium rate