PCCI: Suspend PhilHealth premium hike, raise benefits

MANILA, Philippines — The Philippine Chamber of Commerce and Industry (PCCI) is urging the Philippine Health Insurance Corp. to increase the health benefits package and suspend the implementation of the hike in PhilHealth members’ contributions.

“Despite posting surplus funds, the agency’s health insurance coverage is still at the bare minimum. Members continue to disproportionately shoulder the burden of their hospital and health care expenses,” PCCI president Enunina Mangio said.

PhilHealth had a net income of P173.46 billion in 2023. While PhilHealth has substantial reserve funds, the PCCI said the state-run insurer’s financial assistance to its members continues to be severely deficient.

“These funds are contributions from the hard-earned money of its members. These should be plowed back to members in the form of higher rate of benefits including hospitalization, and the expansion of covered illnesses,” Mangio said.

Earlier, PhilHealth told lawmakers they will raise benefit packages by an additional 30 percent before the end of the year.

Last Feb.14, PhilHealth increased the benefit packages by 30 percent.

The PCCI is also urging the government to suspend implementation of the increase in PhilHealth members’ contributions.

“PhilHealth has shown its solvency. It does not need another rate hike to sustain its operations and services to its members, it needs efficient management of its funds,” Mangio said.

OSG answers case before SC

The Office of the Solicitor General (OSG) asked the Supreme Court to dismiss for lack of merit the petition challenging the diversion of P89.9 billion of PhilHealth excess funds to unprogrammed appropriations in the national budget.

In an 85-page comment, the OSG, representing the respondents in the petition, refuted the claims of petitioners that Section 1(d) of XLIII of the General Appropriations Act of 2024, which contains this year’s national budget, violated the Constitution.

The provision was the basis of the Department of Finance (DOF) circular that directed the transfer of unused funds from government-owned and controlled corporations, particularly PhilHealth, to the national treasury to augment the government’s unprogrammed appropriations.

Solicitor Menardo Guevarra said the provision “is not a rider” and does not violate Article IV, Sections 25(2) and 26(1) of the Constitution, as the provision “satisfied the requirements of germaneness, i.e., particularity, unambiguity, and appropriateness.”

A “rider” provision is not germane to the subject matter of the bill and is proscribed by the constitutional provisions.

Under Section 25(2), no provision or enactment shall be embraced in the general appropriations bill unless it relates specifically to some particular appropriation. Any such provision of enactment shall be limited in its operation to the appropriation to which it relates.

Meanwhile, Section 26(1) requires that every bill passed by Congress “shall embrace only one subject which shall be expressed in the title thereof.”

Guevarra also argued that the subject provision does not amend nor violate provisions of Republic Act 11223 or the Universal Health Care Act; and RA 10351 and RA 11346 or the Sin Tax Reform Laws.

He also said Section 1(d) of the 2024 GAA is “a valid act of appropriation” and does not violate the people’s right to health.

Since the subject GAA provision is “consistent with the provisions of the Constitution and is relevant in providing an additional source of fund for unprogrammed appropriations, the DOF circular to which it is anchored was validly issued.”

Guevarra said the questioned transfer of PhilHealth’s unutilized funds  “when viewed from a broader perspective, will not necessarily hamper, much less disable, the implementation of PhilHealth’s mandate.”

The petition was filed by the Philippine Medical Association, Senate Minority Leader Aquilino Pimentel III, former finance undersecretary Cielo Magno, Dr. Minguita Padilla, former vice presidential spokesman Barry Gutierrez, Likhaan Center for Women’s Health director Dr. Junice Malgar, urban poor leader Ernesto Ofracio, law professor Dante Gatmaytan, Sentro ng mga Nagkakaisa at Progresibong Manggagawa and Public Services Labor Independent Confederation Foundation Inc.

Respondents named were the House of the Representatives, the Senate, DOF, Executive Secretary Lucas Bersamin and PhilHealth, all represented by the OSG.

PhilHealth belied reports on the removal of 30 million indirect contributors of the agency for lack of sufficient budget. — Daphne Galvez, Mayen Jaymalin