PhilHealth: Taxes won’t be imposed on members’ premiums

Published by rudy Date posted on November 20, 2011

MANILA, Philippines – The Philippine Health Insurance Corp. (PhilHealth) yesterday assured its members that taxes will not be imposed on their premium contributions.

PhilHealth president and chief executive officer Dr. Eduardo Banzon said the premium contributions are not covered by the recent issuance of a Bureau of Internal Revenue (BIR) policy imposing levies on voluntary contributions to social security agencies, including PhilHealth, in excess to what the law allows.

“Our employed members’ contributions are based on a salary schedule. The latest range of contribution rates we prescribed took effect Jan. 1, 2007 and until now, this contribution schedule is being followed,” he said.

Banzon added that individually paying PhilHealth members, whose average monthly income over the last 12 months is P25,000 and below, pay P300 per quarter in premium while those receiving higher salary pay P600 per quarter.

“This two-tiered premium rate for IPMs took effect in October last year,” he said.

The PhilHealth official issued the clarification following reports quoting the BIR that an employee pays an additional P1,000 a month to PhilHealth as voluntary contribution.

Banzon said that at present, the agency does not have “a mechanism that will allow members to voluntarily pay premiums over and above the premium ceilings that we have prescribed, in anticipation of being entitled to higher benefits.”

“This is how social solidarity works and this remains among the pillars on which the NHIP stands,” he said referring to the National Health Insurance Program.

Banzon added that since PhilHealth does not collect optional or voluntary premiums, it is not covered by the BIR taxing policy.  –Sheila Crisostomo (The Philippine Star)

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