PhilHealth warns tardy employers

CEBU, Philippines – The Philippine Health Insurance Corporation (PhilHealth) has warned delinquent employers of civil and criminal charges if they will continue to neglect the law on the prompt remittance of premium contributions.

In a press statement sent to The FREEMAN, PhilHealth said it observed that many employers and self-employed members are negligent in remitting their contributions.

It said that filing suits against employers not remitting the premium contributions of their employees is one of the major thrusts of the corporation to intensify premium recovery efforts.

“In Central Visayas alone, there have been 35 companies reported and monitored to have arrears with PhilHealth reaching to as much as P400,000,” PhilHealth reported.

This problem has affected the viability of the corporation to provide better health care services and higher medical benefits to the members.

Delinquent employers are identified through monitoring and comparing of data from member accounts information system and treasury database as well as through visitation of employer’s premises to determine the status of remittance, and verify complaints of employees.

An employer that fails to remit its employees’ contributions will be issued a billing statement by the collection section of PhilHealth. The employer is expected to comply within a given period.

“If the employer fails to settle its debts after due notices, the legal service sector will take legal action in accordance to the penal provisions of Republic Act 7875 or the National Health Insurance Act,” PhilHealth said.

Section 161 of the Implementing Rules and Regulations of Republic Act 7875 says that any employer that does not deduct contributions from the employee’s compensation will be penalized.

The fine would be in addition to the outstanding applicable contribution receivable from the employer, and would be multiplied by the total number of employees of the firm.

Article X of RA 7875, on the other hand, affirms that failure or refusal to deduct contributions from the employee’s compensation or remit the same to PhilHealth will be fined no less than P500 but nor more than P1,000 multiplied by the number of employees plus an imprisonment of six to 12 months.

In line with the objective of the National Health Insurance Program to provide all Filipinos with mechanism to gain financial access to quality healthcare services, PhilHealth said consistent and regular remittance of premium contributions must be assured to ensure constant coverage of all members.

Employers and members with delinquent accounts are urged to update their unremitted premium accounts to avoid the imposition of the corresponding legal sanctions. — Jessica Ann R. Pareja/LPM (THE FREEMAN)