Marikina City 2nd Rep. Stella Quimbo (Ellson Quismorio/ MANILA BULLETIN)

An economist-lawmaker is urging the Philippine Health Insurance Corporation (PhilHealth) to temporarily suspend the premium rates contributions for all minimum wage earners, whether employed or self-employed.

In a statement on Tuesday, Feb. 20, Marikina City 2nd district Rep. Stella Quimbo explained that Congress appropriated P79 billion under the 2024 budget to subsidize premiums of indigent families, senior citizens, and persons with disability (PWD) to the state health insurer.

However, PhilHealth reported that it failed to spend P39 billion of the said amount. The previous year, the agency was unable to spend P24 billion out of the P80 billion budget.

“The unspent premium of PhilHealth can very well cover the premium contributions of minimum wage earners for at least a year since in 2022 their premium contribution only amounted to P19.6 [billion],” said Quimbo.

According to the veteran solon, PhilHealth’s financial reserves are expected to reach P463 billion in 2023. This represents premiums from collected from members, as well as subsidies from Congress that have remained unspent.

With an apparent surplus in funding, Quimbo said the agency can “afford to suspend” the premium contributions for minimum wage earners “without compromising its financial stability”.

“Habang kayang i-suspend ang pag bayad ng premium ng minimum wage earners, dapat gamitin ang panahong ito para bumuo ng mga pangmatagalang solusyon gaya ng pagpapalawak ng benepisyong pangkalusugan at pagreporma sa premium contribution ng ating mga manggagawa,” she noted.

(While it is possible to suspend the contribution of premiums by minimum wage earners, this opportunity should be used to develop long-term solutions such as expanding health benefits and reforming the premium contribution of our workers.)

The Marikina lawmaker embodied this recommendation under House Resolution (HR) No. 1595, which sought to utilize PhilHealth’s unspent budget to provide immediate financial relief to the country's economically vulnerable workers.

Should this be granted, it will translate to an average monthly wage boost of about P400 in Metro Manila for non-agricultural workers.

As provided in HR No. 1595, Quimbo is also eyeing the reassessment of PhilHealth’s benefit packages and premium contribution rates.

“The goal is to expand health benefits for all members and potentially reform the contribution structure, or even to possibly eliminate premiums for minimum wage earners and self-employed individuals earning the equivalent of minimum wages,” she underscored.

“In the long run, it is cheaper to prevent than to cure,” she stressed.