Following the directive from President Ferdinand R. Marcos Jr., the Philippine Health Insurance Corporation (PhilHealth) has rolled out a one-time program allowing employers to settle unpaid premium contributions with reduced or zero interest.

Under PhilHealth Circular No. 2026-0001, government and private employers with unpaid contributions from July 2013 to December 2024 may avail themselves of partial or full interest waivers if they settle their obligations within a one-year window ending on Dec. 31, 2026, subject to specific payment terms and compliance requirements. 

PhilHealth said the measure was adopted in response to mounting employer arrears caused by years of compounded interest charges and the financial strain brought by the COVID-19 pandemic, which resulted in “enormous interest amounts,” particularly for small employers and those with payment gaps of six months or more. 

The PhilHealth board approved the program in 2025, allowing employers to choose among three settlement options based on how quickly they pay their arrears. 

Employers who opt for a seven- to 12-month installment plan will be charged a two-percent interest rate, while those who settle within two to six months will pay one percent. Employers who complete payment within one month will be granted a full waiver of interest. 

To qualify, employers must submit required documents, update their employer and employee records in the PhilHealth system, and register and assign all workers to the Yaman ng Kalusugan Program (YAKAP), including completion of each employee’s First Patient Encounter with an accredited provider. 

The circular also allows employers with pending appeals, unpaid surcharges, or existing installment arrangements to apply for the program, provided they meet all conditions. 

“The one-time waiver of interest shall be applied prospectively to all missed contributions and as such, there shall be no refund of any paid interest and/or surcharge from settled premiums,” the circular stated. 

PhilHealth added that any delay or default under the new arrangements would trigger the reimposition of prevailing interest rates under existing rules, and that the agency retains the authority to reassess and collect any underpaid contributions even after settlement. 

With employer applications open only until Dec. 31, 2026, PhilHealth advised interested employers to coordinate with their assigned accounts specialists or their nearest local health insurance office for guidance.

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