Poor adequately protected

Allow us to clarify the issues raised by former Sen. Ernesto M. Maceda in his column (Search for Truth, The Philippine STAR, May 15, 2012).

We wish to assure Senator Maceda and your readers that the revised premium of the Philippine Health Insurance Corp. (PhilHealth) will in no way prejudice underprivileged families, who are not covered by the adjustment.

We must stress that the poorest 5.2 million families — identified under the Department of Social Welfare and Development’s National Household Targeting System for Poverty Reduction (NHTS-PR) — are already enrolled as PhilHealth members, with their premiums 100-percent subsidized and fully paid for by the national government.

These are also the same 5.2 million families targeted by the national government as direct cash transfer beneficiaries.

Thus, it is not correct for Senator Maceda to say that because of the adjusted premium, government is taking away from the poor with the right hand what government is giving away to the poor with the left.

In this case, government is clearly using both hands to give to the poor, using the right to give the cash transfers, and the left to give the PhilHealth premiums.  

On top of the 5.2 million poorest families, nearly five million disadvantaged households not covered by the NHTS-PR have been or being enrolled as PhilHealth members by local government units (LGUs), again with their premiums fully paid for and subsidized by their LGUs.

All told, some 10.2 million vulnerable households are already adequately protected by PhilHealth. These families are expected not to spend a single centavo of premium payment to enjoy PhilHealth benefits, despite the adjusted premium.

The only way these families will be affected is that they will enjoy stronger health insurance protection, since the adjusted premium collected from those who can truly afford to pay, will enable PhilHealth to deliver highly improved benefits.

As to the non-poor informal sector workers and the self-employed, we expect them to fully avail of the tax benefits under the National Internal Revenue Code (NIRC) when they pay their P2,400 annual PhilHealth premium.

The implementing rules of Section 34, Chapter 7 (Allowable deductions) of the NIRC states:

“Premiums on Health and/or Hospitalization Insurance - The amount of premiums not to exceed P2,400 per family or P200 a month paid during the taxable year for health insurance and/or hospitalization insurance taken by the taxpayer for himself, including his family, shall be allowed as deduction from his gross income: Provided, That said family has a gross income of not more than P250,000 for the taxable year: Provided, finally That in the case of married taxpayers, only the spouse claiming the additional exemption for dependents shall be entitled to this deduction.”

Thus, the non-poor informal sector workers and the self-employed may avail of the tax advantage, while enjoying highly improved PhilHealth benefits.

With this rejoinder, we hope that we’ve assured Senator Maceda and your readers that PhilHealth is absolutely committed to giving more meaning to the right to health of every Filipino family, while putting to good use the hard-earned contributions of PhilHealth members.— GREGORIO C. RULLODA, Vice President for Corporate Affairs Group, PhilHealth