Premium hike delay to cut PhilHealth fund life

POSTPONING the mandated increase in premium contributions would cut the fund life of the Philippine Health Insurance Corp. (PhilHealth) by six months, according to the Bureau of the Treasury (BTr).

During a Senate hearing on Tuesday, National Treasurer Rosalia de Leon said the postponement would reduce the PhilHealth’s actuarial life to February 2028 from August 2028.

De Leon said the impact of the deferral is significant because it will decrease collections by 17.7 percent or P15.6 billion.

She added that the drop in the number of payors due to Covid-19 should also be considered. The number of payors is expected to fall to 13 million this year from the original forecast of 18 million. With the lower number of payors, PhilHealth’s collection is projected to shrink to P20.25 billion this year.

Anticipating this, PhilHealth’s board of directors reduced its 2021 program expenditures for its primary care benefit package or the Konsultasyong Sulit at Tama by P17 billion.

Last year, PhilHealth collected P157.85 billion.

“With the deferment in the premium rate in place and the reduction in the number of payors, PhilHealth is expected to book a net loss of P17.5 billion this year,” de Leon said.

Under the Universal Health Care (UHC) law, PhilHealth premium rates should go up from 3 percent to 3.5 percent this year.

Members earning below P10,000 per month will pay a fixed monthly premium rate of P350 while those earning P70,000 per month or higher will have a fixed monthly rate of P2,450. Meanwhile, the monthly premium rate of contributors earning between P10,000 and P70,000 will be computed at 3.5 percent.

Finance Secretary Carlos Dominguez 3rd earlier expressed the government’s commitment to implement the UHC program despite the financial problems of PhilHealth. The program aims to provide Filipino families equitable access to quality and affordable health care services.