President Marcos Jr. Weighs Proposal to Defer PhilHealth Premium Hike Amid Public Concerns

Health Secretary Teodoro Herbosa has called on President Ferdinand Marcos Jr. to suspend the planned 5% increase in Philippine Health Insurance Corp. (PhilHealth) member contributions, arguing that the state insurer possesses sufficient funds to maintain benefits without the hike.

The move comes in response to widespread opposition from netizens, particularly those in the private sector, who view the premium hike as an additional tax burden amid rising inflation and the escalating prices of basic commodities.

Communications Secretary Cheloy Garafil confirmed that President Marcos is currently studying Herbosa’s request, emphasizing that the decision is under careful consideration.

“The President is studying the request,” she said, as reported by Manila Bulletin.

Many private sector employees fear the financial strain they would face if the scheduled premium hike, mandated by the Universal Health Care Law signed in 2019, goes ahead.

The law dictates a gradual increase in PhilHealth contributions, reaching 5% in 2024.

Previously, the premium contribution was increased to 3% in 2020 during the Duterte era, and a .5% annual increment was planned until the target rate.

However, the rate hike was suspended in 2021 due to the impact of the COVID-19 pandemic. If implemented this year, those earning P10,000 a month would contribute P500.

Herbosa emphasized the need for a science-based approach to policy decisions, stating, “It will not be hurt by delaying the increase in premiums.”

The Presidential Communications Office affirmed that President Marcos is reviewing the request and that Herbosa will discuss the matter with the PhilHealth board.

PhilHealth president and CEO Emmanuel Ledesma had previously announced the implementation of the scheduled hike, with direct contributors earning between P10,000 and P100,000 expected to pay new premium rates ranging from P500 to P5,000.

Senator Christopher “Bong” Go, chairperson of the Senate panel on health and demography, echoed Herbosa’s call to suspend the premium hike, emphasizing that there is no need to burden Filipinos amidst the ongoing recovery from the COVID-19 pandemic, Inquirer reported.

Go urged PhilHealth to address anomalies within the agency and ensure that funds are optimally utilized for the benefit of the Filipino people.

Senator JV Ejercito, principal sponsor of the Universal Health Care law, supported Herbosa’s proposal, noting that there is a pending bill for adjustments to premium rates to align with the ongoing recovery from the pandemic.

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