Biz groups urge Marcos Jr. to delay PhilHealth's 5% hike until 2025

Three major business groups in the country are now asking President Ferdinand Marcos Jr. to defer the implementation of the five percent hike in members' contribution to Philhealth.

In a letter to Marcos Jr. signed by Edgardo Lacson, chairperson of Employers Confederation of the Philippines; Enunina Mangio, president of the Philippine Chamber of Commerce and Industry, and Sergio Ortiz-Luis Jr., president of Philippine Exporters Confederation, Inc., they said they unanimously support Department of Health Secretary Teodoro Herbosa’s call, who also serves as the chairperson of the agency, to suspend the five percent premium increase in 2024.

Earlier, Herbosa said that the proposed action would not significantly impact PhilHealth’s financial standing, considering that the agency has sufficient funds to continue providing benefits and services to its members.

“Notably, PhilHealth President and Chief Executive Officer Emmanuel Ledesma has affirmed this claim, stating that even if the said proposal is implemented, PhilHealth’s fund will not be depleted. Furthermore, the Universal Health Care Law of the Philippines, while aiming to offer comprehensive healthcare coverage for all citizens, faces various challenges, especially for our Filipino workers. Researchers from the Philippine Institute for Development Studies emphasize ongoing issues related to access and affordability,” the signatories of the letter stressed.

The three business leaders maintained that despite being PhilHealth members, individuals still shoulder a significant portion of hospital expenses themselves, a situation that will particularly impact vulnerable groups, including the elderly, women, and those in rural and impoverished areas, who disproportionately shoulder the burden due to limitations in national health insurance coverage.

“In light of these circumstances, we humbly propose that PhilHealth momentarily redirect its focus on service enhancement, delaying the hike until 2025. This reprieve would provide much-needed relief to the majority of vulnerable micro and small establishments, as well as Filipino workers who find it challenging to comply with the proposed premium hike, especially with the rising prices of commodities,” they said.

Under review

President Ferdinand Marcos Jr. on Wednesday said his administration was still reviewing the planned PhilHealth premium increase, contradicting PhilHealth head Emmanuel Ledesma Jr. who said last week that the Office of the President had "no objection" to an increase in premium contributions this year.

"It's under review. We are trying to determine if we increase the contribution from four percent to five percent, what are the benefits. So, if there are benefits and we can justify the increase, then we'll do it. But if not, we won't. It's as simple as that. It's just a very straightforward cause-benefit analysis. We're still studying it, but we'll come to a conclusion very, very soon," Marcos told reporters during his send-off to Australia on Wednesday.

Republic Act 11223, the Universal Health Care Law, mandates PhilHealth to increase contributions by increments of 0.5 percent per year beginning in 2021 until it reaches 5 percent in 2024.

Last year, an increase to a 4.5-percent premium was supposed to happen, but Marcos stopped it and he raised the income cap because members were still recovering from the effects of the coronavirus pandemic.