MANILA, Philippines — Organized labor yesterday welcomed the suspension of the Philippine Health Insurance Corp. Inc. (PhilHealth)’s premium hike.
The Federation of Free Workers (FFW) said the suspension of the PhilHealth premium hike would provide workers with “light” financial relief amid rising inflation.
“Though not that big, as this is a light relief for employers and workers as we usher in 2023, it is still a welcome development,” FFW said in a statement.
President Marcos has signed an order to suspend the scheduled increase in the PhilHealth premium provided in the Universal Health Care (UHC) Law.
As provided under the UHC law, the increase in premium rate started in 2020 at three percent and was supposed to be followed by a hike to 3.5 percent in 2021, to four percent in 2022, to 4.5 percent in 2023 and to five percent by 2024.
In 2021, PhilHealth suspended the rate hike of three percent to 3.5 percent due to the COVID-19 pandemic.
By 2022, PhilHealth implemented a raise in the contributions to four percent.
Had the 2023 hike not been suspended, the monthly contributions of members would have increased to P450 from P400 for those earning P10,000 a month.
The state-run health insurer said additional announcements shall be made later “to properly guide the members and their employers.”
With the moratorium, FFW said a worker earning P20,000 monthly will be able to save at least P50 a month from paying the additional PhilHealth premium.
FFW said an employer with 100 workers earning P10,000 each will have reduced costs at P50 for each employee or a total of P5,000 a month from operating expenses for PhilHealth insurance.
Even with the suspension of the PhilHealth premium hike, FFW is still pursuing wage increases through collective bargaining negotiations at the enterprise level, the Regional Tripartite Wages and Productivity Boards and through legislation.
The labor group further reiterated the call for a labor summit with Marcos.
Suspension
PhilHealth is set to discuss the suspension of the scheduled increase in its membership contribution in a meeting today.
Included in the agenda of the PhilHealth Board meeting is the effect of the suspension on the expansion of benefits in accordance with the UHC law.
“Changes in premium schedules will also be synched with planned benefit roll-outs,” PhilHealth said in a statement.
This developed after Malacañang announced Monday the suspension of PhilHealth’s premium contribution increase from four percent to 4.5 percent for the year 2023.
PhilHealth said it was informed of the decision by Marcos via a memorandum issued by Executive Secretary Lucas Bersamin.
This is due to the need to provide financial relief to economically challenged Filipinos due to the difficulties faced amid the COVID-19 pandemic, it added.
“The DOH (Department of Health) and PhilHealth recognize the suspension is intended to help our kababayans cope with the increasing prices of commodities caused by inflation,” PhilHealth said.
‘Scrap hikes’
The Alliance of Concerned Teachers (ACT) yesterday welcomed the suspension and called for the total scrapping of scheduled increases in PhilHealth premiums.
In a statement, ACT chairman Vladimer Quetua said the remaining increases on PhilHealth premiums scheduled until 2025 should be scrapped altogether as previous hikes only proved to be onerous to contributors.
He noted the unsatisfactory services of the state’s health insurance corporation and cited controversies involving its fund management.
“Our teachers were really burdened by last year’s PhilHealth premium hike from three percent to four percent as it effected a significant reduction on our take home pay,” said Quetua.
“We were really hurt financially as amid the soaring inflation in the second half of 2022, the hike was arbitrarily implemented from June to December, including the retroactive collection of premium increases for the months of January to May,” he added.
“The announced suspension should be immediately followed with a move to totally scrap the remaining scheduled increases as PhilHealth members and health care providers alike are sorely unsatisfied with the performance of the health insurance corporation,” said Quetua.
“Worse, PhilHealth has been notorious for scandals and controversies related to fund management through the years, from the self-serving moves of the board to grant themselves exorbitant allowances, to corruption allegations that run to the billions of pesos. Paying higher premiums will never be acceptable to members until PhilHealth services have significantly improved, fund management is straightened and its officials are made accountable,” he added.
Senators laud suspension
Senate President Juan Miguel Zubiri supported Marcos’ decision to suspend the scheduled PhilHealth premium hikes to help ease the burden of Filipinos who are trying to move on from the pandemic.
“I laud the President’s move to suspend the premium hikes on PhilHealth members as it would ease up the burden of the general population in these difficult times coming out of the pandemic,” Zubiri said.
“This suspension shows that the President knows and acts on the needs of our countrymen by bringing down the daily cost of expenses that everyone is burdened with, especially during this time of high inflation affecting everything from food to fuel,” Zubiri said.
The Philippine Statistics Authority (PSA) reported an inflation of eight percent in November 2022, the highest the country has had since November 2008.
This put the year-to-date inflation rate at 5.6 percent, which is beyond the two to four percent target range.
“The premium rate hikes may be established after we have brought down our inflation rate to a more comfortable level in the near future. Once again, we thank the President for this as this will allow a larger take home pay for all salaried workers for the meantime,” he said.
Sen. Nancy Binay said they understood the situation of their fellow Filipinos, especially those directly affected by the pandemic.
“So, it is a big thing to temporarily hold the increase in premiums first,” she noted.
“But I hope the Palace will also clarify that PhilHealth will still charge the supposed adjustments in the years to come,” the senator added.
Sen. Bong Go also supported President Marcos’ decision to suspend the premium increase.
He said, “Given the situation, we are still gradually recovering our economy from this global health crisis, such suspension will significantly unburden our people.”
“As chair of the Senate committee on health, I see no reason why this will adversely affect the various benefits and services to be provided by PhilHealth to its members,” he added.
“We have successfully pushed for the allocation of P79 billion for PhilHealth subsidy under the 2023 national budget,” the senator noted.
In addition, Go said Congress also included another P21.17 billion for benefit package improvements to be used specifically for dialysis coverage, mental health outpatient coverage, improvement of Z-Benefit packages, severe acute malnutrition, all case rate, rationalization of selected medical and surgical procedures and the implementation of the comprehensive outpatient benefit package, including free consultation fees, laboratory tests, other diagnostic services, outpatient drug benefit and emergency medical services.
SSS, Pag-IBIG
House Deputy Minority Leader and ACT Teachers party-list Rep. France Castro said the move of PhilHealth to defer the premium hike due to “socioeconomic challenges” is a welcome development.
“This is good, but I think we can cite the same reason to also defer the premium hikes of the SSS (Social Security System) and the Home Development Mutual Fund, or Pag-IBIG Fund,” she noted in a statement.
Castro cited inflation is still rising, “with the first week of 2023 ushering in a big-time oil price hike and a staggering increase in water and power rates.”
She asked Malacañang to order SSS and Pag-IBIG “to defer their contribution hikes because Filipino workers need every peso that they earn to feed their families now.”
According to Castro, SSS and Pag-IBIG will be like taking away food from the table of Filipino families by insisting in raising their premium rates.
“We hope that Malacañang and the SSS and Pag-IBIG management will heed the calls of poor Fililpinos in this time of crisis,” she added
The new contribution rates of SSS starting Jan. 1, 2023 shall have increased from 13 percent to 14 percent, while Pag-IBIG is set to raise its rates from P100 to P150 this year. – Cecille Suerte Felipe, Sheila Crisostomo, Rhodina Villanueva, Janvic Mateo