Filipinos may soon benefit from lowered government health insurance premiums under a House-approved bill which aims to strengthen the healthcare system and enhance public health emergency preparedness.
The House of Representatives approved on third and final reading House Bill 11357, or the “Act Strengthening the Philippine Healthcare System to Achieve Efficiency and Equity, and to Improve Public Health Emergency Preparedness,” which seeks to amend Republic Act No. 11223 or the Universal Health Care (UHC) Act.
The measure is a priority under the Legislative-Executive Development Advisory Council (LEDAC) and aims to improve efficiency, equity, and sustainability in the country’s healthcare system.
“This bill will strengthen the Philippine healthcare system to improve efficiency and equity and to build resilience moving forward, learning from experiences during the COVID-19 pandemic,” the committee report on the measure stated.
One of the key amendments reduces Philippine Health Insurance Corporation (PhilHealth) premium contribution rates from 5% to 3.5%, with annual adjustments based on actuarial studies reviewed by an independent body and requiring final approval from Congress during the budget process.
To ease the financial burden on overseas Filipino workers (OFWs), the bill mandates that 50% of their PhilHealth contributions be covered by their employers, while the national government shoulders the remaining half.
The measure introduces fiscal safeguards by prohibiting the transfer of PhilHealth reserve funds or income to the national government or any government-owned or -controlled corporation, while requiring that any unused portion of premium subsidies for indirect contributors be allocated exclusively for benefit increases.
Another key provision caps PhilHealth’s administrative expenses at 7.5% of total benefit payments from the previous year, replacing the current limit based on total premium collections.
The bill allows component cities and municipalities to establish Special Health Funds to improve localized healthcare services.
HB 11357 mandates the Department of Health, in consultation with the Department of Budget and Management and the newly formed Universal Health Care Coordinating Council (UHC-CC), to set guidelines for these funds.
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