PhilHealth defends hike in OFWs’ contributions

The Philippine Embassy has issued a statement defending the increase in the contributions of Overseas Filipino Workers (OFWs) to the state-run Philippine Health Insurance Corp., PhilHealth.
“PhilHealth’s move has been decided upon with the best interest of overseas workers and their families in mind,” the embassy said in a statement.
PhilHealth issued a statement through the embassy after receiving complaints against the contribution increase from OFWs in Saudi Arabia and other countries.
The move will adjust the contribution rate from 1,200 pesos (about SR120) to 2,400 pesos (SR240) annually beginning Jan. 1, 2014 to rationalize the PhilHealth contribution structure with the rest of the members from different categories.
“There is a need to adjust the contributions given that the annual premium for every indigent family is already pegged at 2,400 pesos. With such gainful employment status, OFWs’ contribution rate should at least approximate the rate for indigents,” Chona S. Yap, PhilHealth manager for Overseas Filipino program, said.
The health insurance agency has also pegged the contribution for its informal sector members at 2,400 pesos for those earning below 25,000 pesos (SR2,500) per month. For those with a monthly income of above 25,000 pesos, the rate is 3,600 pesos (SR360).
“The new rate for OFWs translates to just 6.70 pesos (SR6.7) per day, which clearly shows that they are still paying a very minimal amount comparable to indigents and informal sector members such as vendors, public transport workers, and the like,” Yap explained.
She further said that the move has been openly discussed for years now with key stakeholders, including OFW groups.
“We have actively brought up the issue with all players, including OFWs, and decided to phase its implementation from this year in response to their calls for deferment,” Yap added.
In addition, PhilHealth said that premium adjustments are called for in order to sustain and continuously improve the level of financial protection being afforded to its members. In the last three years alone, it enhanced its benefits and introduced substantial payments for medically catastrophic and economically draining procedures under its Z Package, which include leukemia, heart surgeries, kidney transplants, lower limb prosthesis, among others, without increasing its premium rates.
The agency is also moving toward shifting its payment mechanism from the traditional fee-for-service (payment per unit of service rendered) to case-based to contain costs, rationalize services and ensure adequate care.
In a separate statement, Alexander A. Padilla, president and CEO of PhilHealth, announced that the corporation is expecting benefit payouts for 2013 to reach 62 billion pesos (SR6.2 billion), citing the increase in benefits, as well as the expanding population coverage.