SC to Palace: Explain PhilHealth fee hike

MANILA, Philippines—The Supreme Court ordered Malacañang and the Philippine Health Insurance Corporation (PhilHealth) to justify the legality of the increase in the members’ premiums this year.

“The Court resolved to require respondents to comment on the petition and the application for a temporary restraining order,” the high court said Thursday.

In a 23-page petition, Kilusang Mayo Uno through counsel Remigio Saladero Jr. urged the high court to also nullify PhilHealth Circulars 0027-2013, 0025-2013 and 0024-2013 for being unreasonable and inequitable.

Under PhilHealth circular 0027-2013, increase in contributions of members employed would only involve those members with a salary range of P8,999.99 and below.

On PhilHealth circular 0025-2013, contributions for land-based Filipino overseas workers increased from P1,200 annually to P2,400 while Circular 0024-2013 increases by P600 the annual PhilHealth contributions of members with monthly income of P25,000 and below.

PhilHealth said the increase is necessary because it will entitle members to in-patient hospital care, out-patient coverage and other special benefit packages under the National Health Insurance Program.

Petitioners took note that in 2012, PhilHealth awarded some P1.5 billion in bonuses and allowances to its top officials and employees.

“This only shows that if only respondent PhilHealth would only use its funds judiciously and would be less capricious in spending its funds, the need for contribution hikes from its members would be obviated,” the petitioner insisted.

KMU said the increase will be an added burden to workers as it would mean a reduction in their take-home pay.

The KMU added that the said circulars are null and void as it failed to comply with the requirement under R.A. 10606 for the conduct of an “actuarial study” prior to an increase in contributions.

As of June 2009, according to the petitioner,  the estimated coverage of PhilHealth is around 83 percent of the total population or 77 million out of the 92 million population then as estimated to under the coverage of PhilHealth.

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