DOH Endorses Changes to PhilHealth Premiums and Budget Calculations

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The Department of Health (DOH) has expressed its support for the proposed modifications to the Universal Health Care (UHC) Act, following the approval of House Bill (HB) 11357 on its second reading by the House of Representatives. Health Secretary Teodoro Herbosa praised the amendment proposed by Marikina City 2nd District Rep. Stella Luz Quimbo, which mandates the Philippine Health Insurance Corp. (PhilHealth) to base its budget and salary calculations on the benefits it disburses rather than its collections.

Secretary Herbosa highlighted President Ferdinand R. Marcos, Jr.’s understanding of the UHC’s operational core, derived from his experience as a former provincial governor. This perspective, which combines a national outlook with local implementation, drives the DOH’s active engagement with both the House and the Senate to enhance the UHC Act. Herbosa expressed optimism about the bill’s swift passage into law.

HB 11357, titled ‘An Act Strengthening the Philippine Healthcare System to Achieve Efficiency and Equity, and to Improve Public Health Emergency Preparedness,’ proposes several changes to the UHC or Republic Act 11223, which has been in effect for nearly six years. Its Senate counterpart, Senate Bill 2620, was passed on its third and final reading on August 27 and awaits reconciliation with HB 11357 before presidential approval.

Key amendments in the House bill include reducing PhilHealth premium rates from five percent to 3.5 percent for all members, with annual adjustments based on actuarial studies reviewed by an independent, non-government body and approved by Congress during budget deliberations. Additionally, migrant workers will be exempt from paying premiums, with their employers covering half of the cost and the national government the other half.

PhilHealth’s administrative costs, including salaries, will now be capped at 7.5 percent of the previous year’s total benefit payments, shifting from a percentage of total premium collections. The bill also allows component cities and municipalities to set up or maintain Special Health Funds, with guidelines to be crafted by the DOH in collaboration with the Department of Budget and Management and the UHC Coordinating Council (UHC-CC).

A new UHC-CC will be established, co-chaired by the Secretaries of Health and the Interior and Local Government, and will include existing officials as members. HB 11357, authored by Rep. Ciriaco Gato, Jr. of Batanes and co-authored by 67 others, consolidates 26 related house bills. Rep. Quimbo introduced 13 amendments on the floor, all of which were accepted by the bill’s sponsor and the majority.