In a recent announcement, the Philippine Health Insurance Corporation (PhilHealth) has disclosed its decision to raise member contributions this year, citing the need for additional funds to enhance the benefits it provides.

The premium rate is set to increase from the existing 4% to 5%, affecting individuals earning monthly salaries between P10,000 and P100,000.

“For those earning below the salary floor of P10,000, contributions are computed using the minimum threshold; while those who earn the set ceilings/limits shall pay premiums based on the set ceiling. This policy shall also apply to seafarers,” PhilHealth said in a statement.

Emmanuel Ledesma Jr., PhilHealth’s President and CEO, explained that the adjustment adheres to the Universal Health Care (UHC) law, particularly Section 10, which ties a contributor’s premium rate to their income.

It is important to note that a similar increase was intended in 2023, but President Ferdinand Marcos Jr. suspended it due to economic challenges exacerbated by the COVID-19 pandemic.

Ledesma addressed the potential suspension this year, emphasizing PhilHealth’s commitment to compliance with any directive from President Marcos Jr.

He reassured that mandated benefits would remain unaffected, stating, “Once we get the directive or instruction, we will immediately comply. If PBBM freezes it, that will be minus P17 billion for the year…I don’t think that anything will be affected; all the plans will push through as expected.”

Philhealth contribution is now 5% from the 4%.

Mag contribute ka ng halos 1k a month pero ang bibigay lang saiyo kapag nagkasakit ka ay less than 10k lang kahit napakalaki ng bill mo.

Philhealth is the least useful/underutilize in terms of our mandatory fees.

— Dave (@kingdc012) January 12, 2024

The increase, aligned with the UHC law, raises concerns for private employees, especially those already enrolled in private Health Maintenance Organizations (HMOs) through their employers.

This demographic often experiences limited benefits from PhilHealth, and the additional financial burden may disproportionately impact them.

Tangina, sobrang nakakagalit na ang PhilHealth, increased nanaman by 1% this year.

5% na in total, pero BULOK parin ang health system, facilities, and accessibility, mababa parin sahod ng mga medical workers until today, saan napupunta ang binabayaran namin? 🥲

— rae 🪽 (@RaeGunn) January 12, 2024

Private employees, who have chosen private HMOs for comprehensive coverage, may now find themselves facing an unexpected strain as PhilHealth raises premiums.

The adjustment also comes alongside changes to benefit packages, with the government aiming to expand coverage for members’ hospitalization expenses.

Despite these efforts, the unique circumstances of private employees, who may feel the pinch of increased premiums despite their existing private HMO coverage, adds a layer of complexity to the impact of PhilHealth’s decision.