Health Secretary Ted Herbosa has called on President Ferdinand “Bongbong” Marcos Jr. to temporarily halt the implementation of the Philippine Health Insurance Corporation’s (PhilHealth) premium rate increase scheduled for 2024. Herbosa conveyed his recommendation in a letter sent to President Marcos on Tuesday, emphasizing that delaying the premium increase would not significantly impact PhilHealth’s financial stability.
During a media forum, Herbosa proposed that if the President agrees to the contribution, they should resume from where the rate increase was previously halted, rather than immediately implementing the current 5% rate. He highlighted the importance of a science-based policy and the need to avoid imposing a burden on the people by abruptly raising premiums.
Herbosa justified his stance on suspending the premium hike by pointing to the rising costs of basic commodities, indicating that it is an opportune moment to reconsider the increase. He expressed confidence in PhilHealth’s robust financial reserves and investments.
Health Secretary Herbosa is expected to discuss this matter with the PhilHealth board on the afternoon of January 17. He also holds the position of Chairperson of the PhilHealth Board of Directors.
The planned premium rate increase is in line with the Universal Health Care (UHC) law, which was signed in 2019 during the administration of former President Rodrigo Duterte. The UHC law mandates incremental increases in PhilHealth contribution rates until it reaches 5% by 2024.
It is worth noting that President Marcos had previously ordered the suspension of the premium rate and income ceiling hike for PhilHealth in the calendar year 2023, citing the socioeconomic challenges brought about by the pandemic.
In light of these developments, PhilHealth has announced that its plans to expand the coverage of its benefits packages in the current year will proceed, even if the President decides to suspend the mandated premium rate increase.