PhilHealth hikes contribution rate

MANILA, Philippines — Starting this month, the premium contributions of Philippine Health Insurance Corp. (PhilHealth) employed members will be increased by 0.25 percent or 25 basis points (bps)  to ensure the stability of the social insurance program, the country top health official said.

Health Secretary Francisco Duque III said the move is intended to maintain the sustainability of PhilHealth, which gets P50 billion of the department’s P165 billion budget for 2018.  The amount goes to some 40 million sponsored or indigent-members.

Duque said the expansion of PhilHealth’s insurance benefit packages has shortened the life of its reserved funds from eight years to four years.

“Premium contribution will increase by 0.25 percent effective Jan. 2018. This is very low considering that it’s been almost three decades since the contribution was increased and considering the many benefits that we have for members,” he noted in a forum at the Manila Hotel.

The health chief added that with the adjustment, the “actuarial solvency” of PhilHealth will double from four years to 8.5 years.

Under PhilHealth Circular 2017-0024, the adjustment covers employees and employers in the government and private sectors, including kasambahays and sea-based overseas Filipino workers.

It stated that the contribution rate shall be adjusted by 25 bps from the current 2.5 percent to 2.75 percent, applied straight to the monthly basic salary of employed members.

The salary floor and the ceiling will be pegged at P10,000 and P40,000, respectively. The monthly contribution will still be equally shared by the employee and the employer.

The premium contribution of kasambahays is solely shouldered by their employers, but those receiving a monthly salary of P5,000 or above, will have to pay their proportionate share.