SSS, PhilHealth premium freeze OK’d in House

MANILA, Philippines — The House of Representatives approved on Thursday two measures that would empower President Duterte to suspend legally mandated increases in premium contributions to the Philippine Health Insurance Corp. (PhilHealth) and the Social Security System (SSS) “in times of national emergencies.”

Speaker Lord Allan Velasco thanked congressmen for the quick action on House Bill No. 8316, which seeks to amend the Universal Health Care Act, or Republic Act No. 11223, and HB 8317, which would also amend RA 11199, or the Social Security Act of 2018.

“These are extraordinary times, thus the remedy needed to further unburden our countrymen are also extraordinary. These are necessary measures that need to be taken in order for us in government to extend help to those who need them the most,” said Velasco, who filed both bills only on Jan. 7.

The House only took 10 working days to agree on two complex bills that are expected to breeze past second and third readings on the floor, beating the Senate, which has not even begun committee hearings on four bills seeking to suspend the premium hikes.

Senators are expected to only start next week hearings on Senate Bill 1965 by Sen. Joel Villanueva and SB 1970 by Sen. Richard Gordon, which propose amendments to the Social Security Act to be handled by the committee on government corporations and public enterprises.

Financial impact

The committee on labor, employment and human resources development, on the other hand, will tackle SB 1068 by Senators Grace Poe and Juan Miguel Zubiri and SB 1971 by Gordon, which seek amendments to the Universal Health Care Act.

The proposals in both chambers were filed shortly after PhilHealth and SSS insisted they could not postpone premium increases provided by law, even if millions of Filipinos have lost their jobs amid the country’s worst recession in decades.

SSS president Aurora Ignacio opposed the bills, arguing that the agency could lose P41.37 billion in 2021 contributions if the premium hike were suspended.

“The SSS, therefore, respectfully expresses its opposition to the proposals because of their expected adverse financial impact to the financial health of the SSS and, eventually, on the benefits of pensioners, members and their beneficiaries,” Ignacio said during a hearing.

“Postponing or stopping the implementation of the increase in member contributions will further exacerbate our already dire financial position,” she added.

Nonetheless, the House committee on government reorganization and private enterprises, chaired by Rep. Eric Olivarez, still agreed to consolidate five bills empowering the President to defer the scheduled hike under HB 8317.

The House committee on health, chaired by Rep. Angelina Tan, also approved measures to amend the Universal Health Care Act, after consultations with the health and finance secretaries.

Duterte had earlier ordered PhilHealth to defer the implementation of its premium hike.