Escudero urges PhilHealth to lower contribution rates
Kimberly Capuyan
Senate President Francis "Chiz" Escudero urged the Philippine Health Insurance Corporation (PhilHealth) to utilize its P500 billion reserve fund to slash the mandatory contribution paid by its members on October 1.
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Photo Courtesy of Philippine Star/PhilHealth. |
In a press release, Escudero cited figures from the Department of Finance, pointing out PhilHealth can afford the reduction in the premium contribution rates due to its reserve fund plus a government subsidy every year.
"May mahigit kumulang P500 billion pa silang sobrang pera na pwedeng i-absorb kaugnay sa pagbabayad nga ng buwanang premium. Ang total subsidy ng pamahalaan para sa premium kada taon ay humigit kumulang P70 billion," Escudero said.
In 2021, the subsidy to PhilHealth amounted to P71.3 billion. This went up to P80 billion in 2022, then to P79 billion in 2023. For 2024, it was further lowered down to P40.3 billion.
Escudero argued the funds could have been reallocated for other purposes for seven years if the said subsidies were to be sourced from the firm's reserve fund.
"Pero imbes na gawin 'yon, isa sa mga istratehiya na pwede nilang pag-aralan ay ang gamitin na lang (ang reserve fund) para pababain yung premium na karamihan naman ay gobyerno rin ang nagbabayad," Escudero said.
In a press release on September 11, Escudero cited that PhilHealth is losing, in terms of value, around P20 billion a year by not utilizing its P500 billion reserve fund due to inflation.
"Dalawampung bilyong piso ang halaga ng serbisyong nabibigay mo sana sa Pilipinong nangangailangan ng medical services na hindi niyo naibigay dahil hindi mo ginastos ang pera, and we simply lost that amount to inflation," Escudero said.
"That's why the Department of Finance considered getting the money kasi sayang. Nagde-depreciate lang ang pera, hindi napapakinabangan, and yet in the middle of all of this, lives are being lost. You should've acted yesterday, you should've acted last week, last month, even last year so kindly act with a sense of urgency because tomorrow is already late," he added.
The Senate previously approved Senate Bill No. 2620, which seeks to amend the Republic Act 11223 or the Universal Health Care (UHC) Act, to reduce the premium rate for direct contributors of PhilHealth.
The bill mandates PhilHealth's premium rate to go down to 3.25% from the current 5%, then gradually increase to 3.5% in 2026, 3.75% in 2027, and 4% in 2028.
Escudero also urged PhilHealth to cover the adjustments in its case rates based on the amount of contributions paid by its members.
He said that members who pay bigger premiums should be entitled to higher case rates, if and when they require medical attention.