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Cut in premiums still under study
By Nidz Godino
“This is how I recall in the last hearing I mentioned we will thoroughly study possibility of recommending whether premium contributions will be brought down… decrease in premium contributions,” Philippine Health Insurance Corp. (PhilHealth) chief Emmanuel Rufino Ledesma after saying he would “immediately” recommend to President Ferdinand Marcos Jr. monthly premium contribution of its members be reduced by three percent.
Ledesma seems to have backpedaled on that promise, saying instead that they are still studying proposal.
During hearing of Senate committee on health and demography on transfer of PhilHealth’s excess fund to Bureau of Treasury, its chairman, Sen. Bong Go, asked Ledesma about his recommendation to the President.
Go anchored his inquiry on Ledesma’s statement at previous hearing, that he would recommend to the President reduction of monthly premium contribution of its members, as PhilHealth agreed to transfer P89.9 billion of its unused funds to national treasury.
Apparently not satisfied with PhilHealth chief’s answer, Go pressed, “Are you really not answering my question earlier…when you said that you would recommend decrease of premium contribution to our dear President Ferdinand Marcos Jr., have you done it yet…you promised at the last hearing that you would recommend it…did you avoid my question?”
Ledesma then revealed that they are still studying proposal and have not yet recommended reduction of PhilHealth premium contributions to the President.
“We are still in the process of reviewing and studying. ..so, we have nothing to recommend to President Marcos yet…because PhilHealth is still studying it,” he stressed.
But Go pointed out that PhilHealth chief previously promised to recommend reduction.
“In fact, what you said was… ‘we at PhilHealth our management will recommend to President Marcos that we bring down premium rates…’ that’s on the record…that clear…do you want to review the records?” he said.
Ledesma is supportive of reduction of premium contribution, as part of proposal to amend Universal Health Care (UHC) Law.
“We fully support reduction of premium contribution…as amendment to UHC law 3.25 percent premium rate for 2025 PhilHealth supports it 110 percent…at the same time, we are internally reviewing from our end,” he said.
Go advised PhilHealth chief, “Make good on your promise.”
Previously, during Senate hearing on July 30, Ledesma said PhilHealth is eyeing to recommend to Marcos reduction in contributions of PhilHealth members, after getting rapped for having unused funds government has impounded.
“When will you recommend to the President to lower PhilHealth fee or premium…would you recommend it?” Go asked during July hearing.
Ledesma replied: “actually, yes, we will, especially after this very nice hearing that just happened, we will do it immediately….as early as this afternoon July 30 I will convene our team and we will recommend reduction in premium rates and contribution rates to President Marcos…immediately, to answer your question.”
Labor coalition NAGKAISA lawyers are finalizing petition for certiorari and prohibition against PhilHealth fund transfer.
Coalition further urged Marcos and Finance Secretary Ralph Recto to hold in abeyance transfer of second tranche of P10 billion from PhilHealth to national treasury.
It asserted that PhilHealth fund transfer “is highly illegal and unconstitutional,” as it represents executive usurpation of Congress’s exclusive power to legislate appropriations.
“This is madness, and P10-billion sin, in addition to initial P20 billion government will freely squander,” NAGKAISA said in statement.
Coalition explained illegal to reallocate funds from programmed appropriations, already legislatively approved, to unprogrammed appropriations without required legislative process.
“This undermines constitutional authority of Congress over budgetary matters and sets dangerous precedent for executive overreach,” NAGKAISA stressed.
Coalition previously sent Marcos letter requesting him to return initial P20 billion that was remitted to national treasury from PhilHealth.
“These funds should remain with PhilHealth, where they are crucial for addressing health care needs of ordinary Filipinos, especially amid ongoing challenges in health care sector, we are prepared to take legal action if necessary, either by intervening in existing petition or by filing separate petition for certiorari and prohibition before Supreme Court,” NAGKAISA chairman Sonny Matula said.
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