Increase in PhilHealth premiums of OFWs suspended

by Sheila Crisostomo, Mayen Jaymalin, Evelyn Macairan, Delon Porcalla, Paolo Romero, Ding Cervantes, Artemio Dumlao, Alexis Romero (The Philippine Star, 5 May 2020)

MANILA, Philippines — President Duterte has suspended the increase in premium contributions of overseas Filipino workers (OFWs) to the Philippine Health Insurance Corp. (PhilHealth) amid the coronavirus disease 2019 or COVID-19 pandemic.

At the same time, Duterte ordered agencies to make the payment of premiums voluntary for departing OFWs to provide them relief while the country is grappling with the health crisis.

Presidential spokesman Harry Roque said yesterday migrant workers would no longer be required to pay PhilHealth premiums to secure papers needed for them to leave the country.

“Now that we have a crisis, the decision of the President is we should not impose additional burden to our OFWs, especially at a time when many of them have been repatriated and have lost their jobs,” Roque said at a press briefing.

Roque clarified that the increase in PhilHealth premiums is not included in the Universal Health Care Law (UHC).

“I will just clarify what I said as an author of Universal Healthcare. There is nothing in the law that increases the premiums of OFWs. It is in the IRR and I was not even invited in the crafting of the IRR. I do not know their basis for writing that IRR,” Roque, a former lawmaker, said.

Asked whether there is a possibility that the PhilHealth premium increase would no longer push through, Roque replied: “Well, the reality is an insurance system should be based on actuarial science.”
“Whatever happens, the state will spend for us because it is in line with the obligation of the state to promote the health of Filipinos,” he added.

Amid the outcry of OFWs, PhilHealth will still push through with the .25 percent increase in the annual premium payment being paid by direct contributors this year.

In a statement, PhilHealth president and chief executive officer Ricardo Morales said they fully understand the sentiments of workers concerning the premium adjustments.

Morales noted they have explored several possibilities to cushion the impact of the increase through flexible payment terms.

However, he maintained PhilHealth had collected some P1.02 billion in premium from migrant workers in 2019 while some P1.7 billion in benefits were claimed by the migrant workers.

Of the P1.7 billion, some 69 percent of them used up by the workers’ dependents in the Philippines while 31 percent were claimed by workers overseas.

Under the UHC Act, premium rates shall increase from 2.75 percent to 3 percent in 2020. This prompted PhilHealth to impose the .25-percent adjustment this year to complete the 3 percent.

Morales added the new premium rates were announced in November 2019 through PhilHealth Circular No. 2019–0009 and further clarified by PhilHealth Circular No. 2020-0014 published last month.

The official said they are implementing the adjustments so that PhilHealth can have more benefit packages not only for OFWs but also for their dependents in the Philippines.

“Under the UHC Act, benefit coverage is planned to be increased and expanded so that more Filipinos can be served better. This is the fundamental basis for the premium increase,” he added.

In a press briefing, Morales said the collection of premium has been suspended up to May 30 under the Bayanihan We Heal as One Law because of the crisis caused by the pandemic.

PhilHealth is eyeing to make payment optional temporarily. “We are looking at longer period of moratorium. So in effect, there will be flexible payment period,” he claimed.

Morales added that they are not pushing for a moratorium of payment after May 30 because there are members still willing to pay their premium.

Workers’ demands

At least 200 groups of OFWs yesterday demanded that the government stop the collection of PhilHealth contribution and all other state deductions.

In a joint statement, different groups of migrant workers led by Migrante International, called on the government to help them cope with the economic impact of the pandemic by enforcing a moratorium on the collection of PhilHealth premiums and the overseas employment certificate (OECs) requirement for all departing migrant workers.

The workers said the mandatory three percent increase in PhilHealth premium is only the first phase of a tiered payment computation which is set to increase year by year reaching five percent in 2024. Aside from Philhealth, OFWs said, the government is also collecting other fees from them.

“This increase overburdens OFWs who are already troubled by retrenchments and loss of income due to the COVID-19 pandemic and recession. An overwhelming number of OFWs are not even covered by government’s cash aid program and repatriated workers have been crying out for steady and efficient amelioration,” they pointed out.

The workers stressed that they are already covered by existing insurance and healthcare programs in their host countries which renders the mandatory PhilHealth coverage as “useless for Filipino migrants abroad.”

But since regular contribution to PhilHealth is part of OEC requirements, no OEC will be issued to OFWs unable to complete their payments.

According to the OFWs, the government should just strengthen the public healthcare system and establish a universal healthcare program through free medical and health services.

OFW groups vowed to launch different forms of online protest and creative actions to oppose the mandatory exaction.

Labor coalition Nagkaisa meanwhile welcomed the decision of PhilHealth to temporarily suspend the collection of premiums.

While welcoming the moratorium, Nagkaisa called on PhilHealth to conduct consultations with workers for the development of a health package suitable for those working abroad and their dependents.

Nagkaisa further asked Congress to review an amend the law mandating workers as “direct contributors” of PhilHealth.

“OFWs should be given the flexibility to select which income to level to declare based on their capability to pay and their desire to receive more benefits corresponding to their level of premium contribution,” Nagkaisa said in a statement.

Nagkaisa said Congress should junk the provision making mandatory obligation of full premium payment as requirement for the issuance of the OEC for departing OFWs. –