Solon seeks exemption of OFWs from paying PhilHealth contributions

MANILA, Philippines — OFW party-list Rep. Marissa Magsino is seeking to exempt overseas Filipino workers (OFWs) from paying contributions to the Philippine Health Insurance Corporation (PhilHealth), but some lawmakers want a closer look on the proposal.

During the hearing of the House of Representatives’ committee on health on Tuesday, Magsino explained that the call to exempt OFWs from paying PhilHealth premiums is justified, because there is a misconception that all migrant workers are wealthy.

Instead, Magsino said Philippine Statistics Authority (PSA) data shows that a huge percentage of OFWs work in so-called ‘elementary occupations’ like “construction and farm workers, maintenance crews, household service workers, and peon laborers” — or jobs that do not generate much income.

“[…] Many think that OFWs, especially those who have worked abroad for a considerable period of time, are considerably well-off.  However, not all OFWs are actually that monied as many would tend to think.  The same PSA study shows that 46.7% of our OFWs are employed in the so-called ‘elementary occupations’, which include construction and farm workers, maintenance crews, household service workers, and peon laborers,” Magsino said.

“These OFWs earn an average of P30,000 to P 50,000 a month.  At these lower income brackets, the capacity and propensity to save is much less […] one concrete assistance is to grant them preferential status in relation to their premium contributions to the National Health Insurance Program under PhilHealth,” she added.

Magsino was sponsoring three House bills when she made her speech:

• House Bill (HB) No. 369 which seeks to remove OFWs from ‘direct contributors’ under Republic Act No. 11223 or the Universal Health Care (UHC) Act, which will make paying premiums voluntary
• An alternative bill, HB No. 6116 which will incentivize OFWs by assigning a lower contribution rate — at 1.5 percent of their basic salary computed in Philippine peso
• HB No. 2528 which seeks to incentivize OFWs by mandating PhilHealth to cover diagnostic, laboratory and other medical tests required of OFWs for employment purposes

“These preferential treatments accorded to OFWs are equitable and justified by the unique nature of their overseas employment. Moreover, the distinction is germane to the purpose of the law, which is to ensure that OFWs are guaranteed and provided the ample welfare and health benefits they deserve, and applies to all categories of migrant workers as defined in the proposed measures,” Magsino said.

“Filipino migrant workers are a significant segment of the Philippine labor force accounting for about 10 percent of the Gross Domestic Product (GDP) of the country in a year. These remittances help fuel our economy and provide lifelines to thousands of OFW families and their dependents. For these contributions, they are often hailed as our ‘modern day heroes’. It is about time that they are given what they truly deserve,” she added.

But other members of the House feared that it might be unfair if OFWs are not required to contribute to PhilHealth.  According to Lanao del Norte 1st District Rep. Mohamad Khalid Dimaporo, it will be up to the committee on health to decide but he believes that OFWs continue contributing to the PhilHealth fund.

“Well, that’s the decision of the committee. On my part I would say no, all Filipinos should be treated equally,” Dimaporo said in a press briefing on Thursday at the Batasang Pambansa complex.

Tingog party-list Rep. Jude Acidre, who was recently elected to lead the House committee on overseas workers affairs in place of Kabayan party-list Rep. Ron Salo, meanwhile prefers HB No. 2528 where OFWs can use their PhilHealth contributions for medical examinations for the purpose of employment.

“I think what we need lang is to create some flexibility, like for example you need to pay for PhilHealth contributions before you are issued an overseas employment certificate, where you would have to pay it wholly.  Maybe that can be examined,” he said.

“Second, if we can increase the packages for OFWs, like for example okay they are PhilHealth members but their diagnostic tests, their pre-departure medical diagnostics can be covered by PhilHealth and benefits will be expanded to that effect.  Just to make sure that the contributions made by our OFWs will return to them in availed benefits,” he added.

Acidre said he understands the concerns that PhilHealth benefits will not be used by OFWs while they are outside the country, but the services of the state-run insurer might be useful for different circumstances.

READ: Marcos studying cost, benefit of PhilHealth premium rate hike 

“With regards to the suspension of payments, actually that is a concern of our foreign workers, OFWs, because they cannot use PhilHealth benefits while they are employed outside (the country).  But there are two questions that we also have to consider, first, if they return home before their contract is completed, definitely they will still need PhilHealth benefits when they get to the Philippines,” he said.

“Second is if the dependents of OFWs are in the Philippines, they should be beneficiaries of PhilHealth too,” he added.

READ: PhilHealth members’ contribution hikes to 5% this 2024 

Last January, PhilHealth announced that the members’ premium contribution will increase from 4 percent to 5 percent in 2024, in line with the UHC Act — which means OFWs would also contribute based on the same rate.

However, Malacañang said last February 24 that President Ferdinand Marcos Jr. is still studying proposals to suspend the rate increase — which was suggested by Health Secretary Teodoro Herbosa.