PhilHealth Contributions Set to Increase Starting 2020

Expect more deductions on your paycheck next year as the Philippine Health Insurance Corporation shall raise its contributions next year, in line with the full implementation of the Universal Health Care Law.

PhilHealth announced that it will collect higher premium rate to 3% of the members’ monthly salaries from the current 2.75%. This rate applies to all direct contributors, such as employees, household service workers, self-earning individuals, practicing professionals, and overseas Filipino workers.

This change shall take effect on December 7, 2019 or 15 days after publication of PhilHealth Circular No. 2019-0009. It means employed members shall pay the increased rate for the month of December which is payable on January next year.

“The new premium schedule takes effect on December 7, 2019 or 15 days after the publication of [PhilHealth Circular No. 2019-0009]. Its application for employed members will be for the applicable month of December 2019 (which is payable on January 2020),” PhilHealth said in a statement.

Starting next year, a member earning Php10,000 will now pay Php300 contribution from the previous Php275. The rates will increase until it reaches 5% in 2025, with an annual increment of 0.5% each year.

Members earning below Php10,000 will have contributions using the minimum threshold. Those who earn the set limits shall pay premiums based on the set ceiling. This policy also applies to seafarers. The current set limit is Php50,000, but it will be raised by Php10,000 annually until it reaches Php100,000 in 2025.

Self-paying members, professional practitioners and land-based overseas Filipino workers will be required to submit financial records such as latest income tax return from Bureau of Internal Revenue, duly-notarized affidavit of income declaration, or overseas employment contract as proof of income. This is to ensure accuracy in computation. Failure to do so will mean they will have to pay contributions based on the highest computed rate.

Meanwhile, those employing house helpers will pay their contributions in the full if the monthly salary is Php5,000, as stated in the Kasamabahay Law. If the monthly income is higher than the said amount, the contribution will be deducted from the worker’s income.

Workers with disability will have their contributions divided between their employers and the government.

According to PhilHealth, the new contribution schedule will help support the National Insurance Fund to ensure that all Filipinos can immediately avail of benefits during confinement- even those lacking contributions.

Unpaid premiums will still have to be paid, compounded monthly and penalties of at least 3% a month for employers, seafarers and house helpers. Meanwhile, a maximum interest of 15% for every month of missed payments will be charged to members who are self-employed, professionals, and land-based OFWs.

The Universal Health Care Law is also set to be fully implemented on January, just less than a year after it was signed by President Rodrigo Duterte. It aims to deliver quality, accessible and affordable health services to all Filipinos.