Philhealth raises premium contributions by .25%

Health Secretary Francisco Duque III INQUIRER FILE PHOTO

Members of the Philippine Health Insurance Corp. (PhilHealth) will now have to pay 0.25 percent more in their premium contributions beginning this month.

Health Secretary Francisco Duque III made the announcement during a forum at Manila Hotel on Friday.

“We will hike our premium contributions by 0.25 percent, effective January 2018. PhilHealth has been existing for three decades and it is hiking its premium contributions only now,” he said.

From the previous 2.5-percent contribution rate, PhilHealth members will now pay a 2.75-percent rate, computed based on the monthly basic pay.

Salary floor, ceiling

The salary floor and ceiling will be pegged at P10,000 and P40,000, respectively, with the monthly contribution to be equally shared by the employee and the employer.

“This will double the actual solvency of PhilHealth’s reserve fund from the current four years to eight and a half years,” Duque said.

Benefit packages

PhilHealth first announced the increase in premium contributions in October last year.

The raise covers employers and employees in the government and private sector, household helpers and overseas-based Filipino seafarers.

Duque said the increase in premium contributions was aimed at beefing up PhilHealth’s social insurance benefit packages and reserve fund.

Around P50 billion of the Department of Health’s P165-billlion budget for 2018 was allocated to fund PhilHealth packages, he said. —REPORT FROM JULIE M. AURELIO