PhilHealth to lose P13B due to deferment of contribution hike

By: Cathrine Gonzales, INQINQUIRER.net, 6 Jan 2021

MANILA, Philippines — The Philippine Health Insurance Corporation (PhilHealth) will lose around P13 billion this year with the deferment of the increase in its members’ contributions, its spokesperson said Wednesday.

In an interview with ABS-CBN News Channel, PhilHealth spokesperson Rey Balena said the state insurer was supposed to generate an additional P13 billion this year if it will push through with the 3.5-percent member contributions from their monthly basic salary.

“If we will push through with the premium adjustment, it will generate for PhilHealth additional P13 billion in income coming from our direct contributors,” he said.

“For this year, our projected income for our direct contributors is at P76.8 billion and we are projecting an income for 2021 of P90 billion so there will be a P13 billion deficit in this area in so far as collections are concerned,” he added.

However, Balena said the programs of PhilHealth will proceed despite this projected loss as the state insurer still has P137 billion in reserve funds.

“For one we are very hopeful that the commitment of the President as well as by Congress will generate the necessary funds that will be needed by PhilHealth for us to be able to continue on with our programs,” he added.

President Rodrigo Duterte earlier ordered the postponement of the increase in contribution rate for members of PhilHealth due to the COVID-19 pandemic.

The premium rate of PhilHealth members was supposed to increase to 3.5 percent of monthly basic salary this year, from the previous 3 percent in 2020.

Republic Act No. 11223, or the Universal Health Care Act, mandates increases in member premiums by increments of 0.5 percent every year, starting 2021 until it reaches the 5-percent limit in 2025.

JPV