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Think tank warns vs granting president power to suspend PhilHealth rate hike

Published Mar 23, 2023 06:41 am


Think tank Action for Economic Reforms (AER) has warned against the proposed measure in Congress seeking to grant the president the power to suspend Philippine Health Insurance Corp. (PhilHealth) premium hikes. In a statement, AER said Thursday, March 23, that giving the president the power to suspend the increase in premium rates without clearly defining the conditions and parameters of the power would pose a danger to public health. On March 21, the House of Representatives voted in favor of House Bill 6772 on its third and final reading. This bill grants the president the power to suspend and adjust the increase in premium rates for direct contributors of the PhilHealth. According to HB 6772, the president may suspend premium hikes during “national emergencies or calamities, or when public interest so requires.” “We recognize that the suspension of PhilHealth premium hikes during calamities and national emergencies is a humane measure to provide Filipinos with financial relief,” AER explained. However, AER noted that “giving the president this power…without clear conditions and parameters, especially around the term ‘or when public interest so requires’ could enable arbitrariness and abuse.” The think thank said invoking a nebulous concept of “public interest” as an excuse to suspend or prolong premium payments will have devastating consequences on the health system and the economy. “This will reduce the provision of health goods and services and at the same will increase the out-of-expenses for health care, especially among the lower-income groups,” AER said. “This will  likewise aggravate our fiscal position, as government will rely on debt and deficit spending to make up for the losses arising from suspension of premiums,” it added. According to the Department of Health (DOH), there is still a funding gap of at least P163.6 billion to meet the funding requirements for the Universal Health Care (UHC) Law. This funding gap will only widen further if PhilHealth premiums do not increase in the next few years, consequently delaying the full implementation of UHC, AER said. “We appeal to the Senate to reject House Bill 6772 in its current form. The passage of this bill endangers the steady financing of PhilHealth, which in turn can negatively affect the lives of millions,” AER said. “The premium contributions provide more Filipinos with access to life-saving healthcare services. Allowing the suspension of PhilHealth premium hikes to be influenced by politics will only move us further away from our dream of Universal Health Care for all Filipinos,” it concluded.

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PhilHealth Action for Economic Reforms Philippine Health Insurance Corp.
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