No suspension of 5 percent hike in PhilHealth contribution

MANILA, Philippines — There will be no suspension in the five percent increase in premium contribution to the Philippine Health and Insurance Corp. (PhilHealth) after Malacañang gave its approval to continue with its implementation.

At a press briefing yesterday, PhilHealth president and chief executive officer Emmanuel Ledesma said a letter sent to PhilHealth by Executive Secretary Lucas Bersamin days ago noted that Malacañang did not oppose the five percent increase in premium rate that was implemented starting Jan. 1.

“We wrote Malacañang. We were seeking clarification and direction as to the implementation of the increase in contribution. Their reply was, ‘After a very thorough study on the premium contribution increase, we pose no objection on the scheduled increase, which was implemented on Jan. 1,’ ” Ledesma said.

“After a thorough discussion among all parties involved, I think it was agreed upon, and I think this one percent (from four to five percent) increase in premium is not that much compared to the increase in benefits,” he added.

Ledesma stressed: “We are just implementing what is stated in the law. It was suspended last year and this year, members can really feel the benefits, given the increase.”

The state health insurer earlier issued an advisory that the increase for premium contributions already took effect starting Jan. 1, 2024.Under Republic Act 11223 or the Universal Health Care Act of 2019, the increase in premium rate started in 2020 at three percent and was supposed to be followed by a hike to 3.5 percent in 2021, four percent in 2022, 4.5 percent in 2023 and five percent in 2024.

In 2021, PhilHealth suspended the rate hike of three percent to 3.5 percent due to the COVID-19 pandemic.

The PhilHealth’s premium rate increase implemented last month is being closely reviewed by President Marcos to make sure it significantly improves members’ benefits, Malacañang said on Friday.

“The review is still ongoing. The President wants to ensure that any increase in premium will substantially be much more in value in terms of benefits and coverage to PhilHealth members,” Presidential Communications Office Secretary Cheloy Garafil told Palace