House OKs bill expanding PhilHealth coverage

MANILA, Philippines - The House of Representatives has approved on third and final reading House Bill 6048, which expanded the coverage of the National Health Insurance to all Filipinos.

“Once signed into law by the President, this will revolutionize the health insurance system in the country. We have put in system on how PhilHealth (National Health Insurance Corp.) will use its reserves so that it will have funds and not go bankrupt as in other countries,” Bacolod City Rep. Anthony Golez said in a telephone interview.

“Now, there will be more money for the treatment of more illnesses,” he said.

Golez, who serves as vice chairman of the House committee on health and one of the principal authors of the measure, said that the bill amended Republic Act 7875 or the National Health Insurance Act of 1995 and consolidated 56 similar bills filed in the chamber.

The lawmaker, however, said the success of the measure hinges on the enactment of the “sin tax bill” – now pending in the Senate – that will be the source of funds for PhilHealth.

Golez said at least P18 billion would be needed for the first year of implementation of the full PhilHealth coverage.

He said a survey commissioned by a private pharmaceutical association in 2011 revealed that 70 percent Filipinos do not avail of professional health services and health facilities to take care of ailments because of the expense.

“The financial barrier is one of the reasons why the poor do not seek the services of medical professionals and health facilities. The Philippines is reported to be one of the highest in Asia in terms of out of pocket expenditures for health services,” Golez noted.

Features of the bill include full government subsidy in the payment of premium contributions of indigents to PhilHealth; mandatory enrollment in the Philippine health insurance program for all Filipino citizens and voluntary membership of qualified foreigners; and provision of payment schemes other than fee-for-service.

Golez said the bill also empowers PhilHealth “to better respond to financing the health needs of the population, such as visitorial jurisdiction to hospitals, power to charge interest rates for delayed remittances and invest in information technology, increase in penalties for fraud and abuses committed against PhilHealth, authority to use the excess reserve funds for enhancement of health facilities and increase rate of premium payments.