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Gadon wrong; PhilHealth contribution increased to 5% in 2024

The Philippine Health Insurance Corp. (PhilHealth) raised its members’ contribution to 5% in 2024, contrary to a claim made by Presidential Adviser for Poverty Alleviation Secretary Larry Gadon that there was no increase.

In an interview with Angelique Lazo on May 6, which aired live on People’s Television Network, Gadon said at the 3:33 mark:

Despite the non-increase of the premium in PhilHealth, the benefits on the bills have been increased to 30%, whereas before it was 20%. 

Contrary to Gadon’s claim, the premium rose to 5% last Jan. 1 and has since been in effect across all PhilHealth collection systems. The PhilHealth Regional Office NCR Advisory No. 2024-002 reads in part: 

Effective January 1, 2024, the scheduled PhilHealth Premium Increase will be implemented in accordance with Section 10 of The Universal Health Care Law. As mandated, the premium contribution rate for CY 2024 is set at 5% of the basic monthly income, with an income floor of Php10,000.00 and an income ceiling of Php100,000.00.

In line with Section 10 of Republic Act 11223 or the Universal Health Care Law, PhilHealth issued Circular No. 2019-0009 on Dec. 7, 2019 implementing the raise of the member contribution rate by 0.5% every year starting 2019 until it reaches 5% in 2024.

PhilHealth last year released an official statement suspending the premium hike following an order from President Ferdinand Marcos Jr. who cited socioeconomic challenges caused by the pandemic. PhilHealth said it will:

…suspend the premium rate increase from 4.0% to 4.5% and the increase of income ceiling from P80,000 to P90,000 in CY 2023. With such suspension, the premium rate for CY 2023 remains at 4% with income ceiling of P80,000. 

The contribution increase for 2024, however, has been rolled out since Jan. 1 with no opposition from Malacañang, as confirmed by PhilHealth President and Chief Executive Officer Emmanuel Ledesma Jr. during a press conference on Feb. 23 at the 21:41 mark.

Kasi na-implement na yung increase noong January 1. So we wrote a letter to them seeking guidance and clarification and so and so and they said they pose no objection to the increase (The increase was already implemented on January 1. So we wrote a letter to them seeking guidance and clarification, and so on, and they said they pose no objection to the increase.)

Ledesma added that the hike is needed to generate more funds to sustain PhilHealth’s new policies and services, which includes the 30% benefit package increase Gadon mentioned in his claim. (EM)


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