- Philhealth contribution will increase to 3% from the current 2.75% of monthly income starting January 2020 for all direct contributors
- Self-paying members, professional practitioners, and land-based overseas Filipino workers need to submit financial records for their contributions to be computed
- The Universal Health Care Law mandates every Filipino to be enrolled in PhilHealth’s National Health Insurance Program
The Philippine Health Insurance Corporation announced on Friday that an increase in the premium rate is set to rise starting January next year.
From the current 2.75% premium rate from the members’ monthly salaries, it will rise to 3%. That will be P300 for a member earning P10,000 a month from the current P275 only. The change applies to all direct contributors, including employees, household service workers, self-earning individuals, practicing professionals, and overseas Filipino workers.
“The new premium schedule takes effect on December 7, 2019 or 15 days after the publication of [PhilHealth Circular No. 2019-0009]. Its application for employed members will be for the applicable month of December 2019 (which is payable on January 2020), Philhealth said.
A 0.5 percent increase every year is scheduled until it reaches its 5% limit in 2025 which is allowed by the law.
“For those earning below the salary floor of P10,000, contributions are computed using the minimum threshold; while those who earn the set ceilings/limits shall pay premiums based on the set ceiling. This policy shall also apply to seafarers,” Philhealth added.
Philhealth said, “To ensure accuracy in computation, PhilHealth will require submission of financial records such as latest income tax return received by the Bureau of Internal Revenue, duly-notarized affidavit of income declaration, or overseas employment contract as proof of income.” If not, they will pay contributions based on the highest computed rates.
Self-paying members, professional practitioners and land-based overseas Filipino workers will pay contributions based on their earnings.
House helpers who earn a salary of P5,000 a month will have premiums shouldered 100% by the employers in conformity to the Kasambahay Law. Still, if their income is above P5,000, the contribution will be deducted from the worker’s salary.
For persons with disability, the employer and the government will equally share their contributions.
The scheduled increase will help sustain the National Health Insurance Fund to ensure it can continue its services and benefits to all Filipinos — even those short of contribution.
Nonetheless, PHIC will still continue to collect unpaid contributions with the corresponding interests and penalties of at least 3% a month for employers, seafarers, and house helpers. For self-employed, professionals, and land-based OFWs, 1.5% maximum interest a month is charged for missed payments.
The Universal Healthcare Law signed by President Duterte earlier this year will be fully implemented starting January 2020. The law mandates everyone is enrolled in Philhealth. Currently, data from the DOH revealed that 98% of Filipinos are already members of PhilHealth’s National Health Insurance Program.