Palace rejects calls to stop SSS, PhilHealth premium hike

Communications Secretary Herminio Coloma. PHOTO BY LYN RILLON

MANILA, Philippines – Malacañang on Sunday rejected calls to stop the increase in Social Security System (SSS) and Philippine Health Insurance Corp. (PhilHealth) premiums.

Secretary Herminio Coloma of the Presidential Communication Operations Office said that the increase in the amount of contributions is minimal and affordable.

He said the adjustment could bring better benefits to citizens, stressing that the move should be understood in the context of the government’s “social protection” program.

“It is clear that the higher contributions for SSS and PhilHealth are the result of a thorough study to make sure they will not be a burden on members, and will result in greater benefits for members,” Coloma said in a radio interview.

“The move was based on thorough studies and is within the law. There is no plan to stop it.”

He said the adjustments were consulted with traders’ union groups including the Employers’ Confederation of the Philippines, Philippine Chamber of Commerce and Industry and the Trade Union Congress of the Philippines.

Coloma stressed that the higher contributions are in context of social protection where the proceeds will benefit the underprivileged members of society.

He added that PhilHealth currently covers 80 percent of the population, including four million families who are sponsored members and free from the higher contributions and who are beneficiaries of the conditional cash transfer.

For employees, individually paying members and overseas Filipino workers, the added contributions amount to P200 from the previous P100, an increase of P3 a day.

Such contributions entitle members access to health services in 85 public hospitals in the country.

“We should understand the context of the social protection program as far as the SSS and PhilHealth are concerned,” Coloma said.

For the SSS contributions, Coloma said that the increase was needed to prevent the agency’s fund from going drying up.

“Once the funds of the SSS are depleted, all Filipinos have to shoulder the costs of pension because the pensions are guaranteed by the government,” he said.

Coloma said that the increase in contribution to the SSS that started on the first day of the year amounts to 0.6 per cent of the monthly contributions. The contributions will bring down the unfunded liabilities of SSS to P1.666 billion from P1.078 trillion.

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