SC asked to stop hike in PhilHealth contributions

MANILA, Philippines - Militant labor group Kilusang Mayo Uno (KMU) yesterday asked the Supreme Court to stop the Philippine Health Corp. (PhilHealth) from increasing the members’ monthly contributions.

The KMU sought a temporary restraining order preventing PhilHealth from implementing its plan to increase the premiums from P750 to P1,000 starting this year.

It urged the high tribunal to declare the increase null and void for allegedly violating Republic Act 10606, which amended RA 7875, the law that created PhilHealth.

The group cited PhilHealth’s Circular No. 0027-2013, which provides that any increase in contribution would only cover members with salary range of P8,999 and below, and not those belonging to a higher wage bracket.

“It is easy to see why the Circular is unreasonable and inequitable. Those with lower salaries will have to pay more while the higher-paid ones will maintain their contribution rates,” the KMU said in the petition filed through counsel Remigio Saladero Jr.

The labor group deplored Circular No. 0025-2013, which doubled the contributions for land-based Filipino overseas workers from P1,200 annually to P2,400, and the Circular No. 0024, s-2013, which increased by P600 the annual contributions of members with monthly income of P25,000 and below, while those receiving P25,000 and above retained their premium rates.

“There is no way that such a scheme would be equitable and progressive. In failing to apply the standards of being reasonable, equitable and progressive, the increase in contributions under the assailed Circulars is therefore null and void,” the petitioner said.

Earlier, the state health insurance defended the increase saying it is necessary in order for members to be entitled to in-patient hospital care, outpatient coverage and other special benefit packages.

KMU argued such objectives could be achieved even without increasing the members’ contribution as it pointed to the P1.5 billion in bonuses and allowances that PhilHealth granted to its top officials and employees in 2012.

“This only shows that if only PhilHealth would use its funds judiciously and would be less capricious, the need for premium hike would be obviated,” it said.

The increase, KMU said, would only cause additional burden to workers whose take-home pay would be cut further.

It said the circulars were null and void as they failed to conduct actuarial study before the premium hike.

“None of the subject circulars mentioned anything about an actuarial study, which could have prompted PhilHealth to impose the hike.”

Based on records, as of June 2009, 83 percent of the population – or about 77 million – is covered by PhilHealth.

 Aside from PhilHealth, the government was named respondent in the petition. – Edu Punay, Mayen Jaymalin