The fifth wave on the gradual increase in the Philhealth contribution to 4.5 percent will take effect January 1, 2023. This is in accordance with Philhealth Circular No. 2020-0005 pursuant to R.A. No. 11223 known as the “Universal Health Care Act” (Revision 1).
R.A. 11223 which was signed into law last February 20, 2019 under the administration of President Rodrigo Duterte aims that all Filipinos are guaranteed equitable access to quality and affordable health care goods and services, and to be protected against financial risk. Among the salient features of the said Act are the expansion of population to be covered, service and financial coverage from 98% from 2018 to 100% coverage.
According to the Act, Philhealth members will be classified into two types; direct contributors (premium contributors from payroll) and indirect contributors (fully subsidized from tax collections).
For Direct Contributors, the monthly contributions shall be in accordance with the premium rates and basic salary as prescribed in the Act, upon effectivity of the Implementing Rules and Regulations (IRR).
Due to the pandemic which started last 2020, Philhealth halted the scheduled premium increase of 3.5% for the year 2021. However last May 23, 2022, Philhealth announced the retro-effectivity of the 4% premium rate for the year 2022, starting January. From the applicable month of June 2022, the 4% premium rate was to be deducted and remitted. The corresponding 1 % differential from January to May will be due for remittance until December 31, 2022. In a televised public hearing last Dec 12, 2022, Rey Baleña, Philhealth Corporate Communication Senior Manager, officially announced that the scheduled gradual premium increase of 4.5% will take effect January 1, 2023.
To reiterate, starting January 1, 2023, below will be the reference on the Philhealth contribution:
Said premium is being shared 50/50 by the Employee and Employer. For example, an employee with a basic salary of 50,000.00 per month will have a deduction from his/her salary in the amount of P 1,125.00, computed as P 50,000 x 4.5% ÷ 2 = P 1,125.00. While employees with monthly earning of P 90,000.00 and above, deduction is capped at P 2,025.00 employee share.
Meanwhile, Indirect Contributors consist of Indigents identified by the DSWD; Beneficiaries of Pantawid Pamilyang Pilipino Program/ Modified Conditional Cash Transfer (4PS/MCCT); Senior Citizens who are not currently covered by the program; Persons with disability, as defined in RA 10754; all Filipinos aged 21 years old and above without the capacity to pay premiums; Sangguniang Kabataan officials, as defined in RA 10742 and those previously identified point-of-service (POS).