PhilHealth contribution hike in limbo as PBBM reviews proposal

The fate of the proposed hike in Philippine Health Insurance Corp. member contributions remains uncertain, as President Ferdinand Marcos Jr. is still reviewing the proposal.

Malacañang made the confirmation on Friday, contradicting PhilHealth president and CEO Emmanuel Ledesma Jr.'s statement in a briefing that Marcos Jr. had 'no objection' to PhilHealth contribution hike.

"The review is still ongoing. The President wants to ensure that any increase in premium will substantially be much more in value in terms of benefits and coverage to Philhealth members," Communications Secretary Cheloy Garafil told Palace reporters in a Viber message.

But in a press briefing in Pasig City, Ledesma said that the state health insurer had received a letter from the Office of the President via Executive Secretary Lucas Bersamin, affirming that "they have no objection to the planned increase, which took effect on 1st January," following a "very thorough study."

Ledesma mentioned that the agency sought clarification from the President after Health Secretary Ted Herbosa appealed to halt the implementation of the increase.

“It was clearly stated by (Marcos Jr.) that the premium increase will continue,” Ledesma said.

Health Secretary Ted Herbosa urged Marcos to reconsider the proposed contribution increase last January.

"I'll see. I'll tell them: Okay if you're going to increase it, show the other side of that. What will be the increase in services? What will be able to cover? What more will you be able to cover?'" Marcos said previously.

Starting 1 January, the premium rate has risen to 5 percent, with the monthly basic salary ceiling increasing to P100,000 while maintaining the minimum at P10,000.

For instance, if a worker earns P10,000 monthly, their monthly PhilHealth contribution should now be P500 starting this year. This contribution will be evenly divided between the employee and the employer.

Last year, the premium rate was slated to increase to 4.5 percent, and the monthly basic salary ceiling was set to reach P90,000. However, Marcos postponed this adjustment due to the pandemic's socioeconomic challenges.

The planned increase in PhilHealth rates aligns with the Universal Health Care Law enacted in 2019 during the administration of then-President Rodrigo Duterte. This law stipulates incremental hikes in the PhilHealth contribution rate, culminating in reaching 5 percent by 2024.