Increase in Philhealth Contributions Starting June 2022

14 May 2022
Increase in Philhealth Contributions Starting June 2022

The Philippine Health Insurance Corporation or PhilHealth contribution will have its scheduled premium hike in June 2022.


PhilHealth Senior Manager for Formal Sector-member Management Group Rex Paul Recoter announced in a statement last May 4 that it will continue the execution of the premium increases and the Php 80, 000 income cap under the national government instruction, which was meant to go into effect in January 2022 but has not yet. The state's health insurance provider has announced that it would begin charging a 4% contribution rate beginning in June.


Philippine Health Insurance Corporation (PhilHealth)

PhilHealth is a state health insurer that was established in 1995 with the goal of providing the Philippines with universal access to healthcare. It is a government-owned and controlled company (GOCC) of the Philippines and it is affiliated with the Department of Health, making it a tax-exempt institution.


The National Health Insurance Program or NHIP, which PhilHealth executes, strives to provide Filipinos with financial help and affordable access to healthcare. In addition to covering the cost of medical care and hospital subsidies, it also pays for prescription medications and professional services.


The employee's income is linked to a wage base that serves as the foundation for the PhilHealth contribution.


Previously, the salary base for the PhilHealth contribution rate of an employee was as follows:


Fifty percent must be covered by employers, and fifty percent were withheld from employees' salaries each month. There is a minimum payment of Php 275 per month for employees who were earning less than or equal to the minimum salary base of Php 10,000. Whereas, those employees who were earning the maximum salary base of Php 50, 000 had a maximum contribution of Php 1, 375 per month.


We can take this scenario as an example:


An average monthly basic salary of a full-time employee is Php 31, 253.33. The monthly pay grade based on the PhilHealth contribution table is Php 31, 000 depending on the PhilHealth contribution schedule. It costs the employee a total of Php 775 a month to participate in the PhilHealth program. Saying this, Php 380 will be covered by the company while the remaining Php 380 will be taken from the employee's income each month.


PhilHealth New Premium Rates for June 2022

Rex Paul R. Recoter, the senior manager of PhilHealth, stated last May 4 that they are obligated to collect the scheduled premium adjustment and a higher premium rate of 4% this year since Congress has yet to enact a new legislation authorizing the suspension of planned premium adjustments under the Universal Health Care Law or UHC Act.


Starting in 2019, premiums were raised by 2.75 percent per year until they reach a maximum of 5 % per year in 2024 and 2025 under the Universal Health Care Law. It is recommended that the annual premium rate be set at 4 %, with a Php 10, 000 income floor and a Php 80,000 income ceiling.


As part of an "interim arrangement" that would endure only until Congress adopts a new legislation permitting the deferral, PhilHealth agreed last year to delay the premium increase from 2020 to 2021 to 3.5 % from a previous target of 3 percent.


Premium contribution for PhilHealth Members

Those who make P10,000 or more a year would pay P400 in monthly Philhealth premiums, while those who pay P4,800 a year will pay P400 in premiums. P3,200 per month in PhilHealth contributions and P38,400 per year in PhilHealth contributions are required for persons earning up to P80,000 per year.


According to PhilHealth Senior Manager for Formal Sector-member Management Group Rex Paul Recoter the new premium contribution for PhilHealth members would be as follows:


Those who make an income floor of Php 10, 000 per month would pay Php 400 in monthly Philhealth premiums, which will make up to Php 4, 800 premiums every year.


On the other hand, for persons earning up to an income ceiling of Php 80, 000 per month will have a Php 3, 200 per month in PhilHealth contributions which is equivalent to Php 38, 400 premium rate hike for PhilHealth contributions every year.


For employers and self-paying members

For employers and self-paying members who use the Electronic Premium Remittance System (EPRS) and the PhilHealth Member Portal (PMR), respectively, the amended premium rate of 4% shall take effect for contribution payment for the applicable month of June 2022.


It must also be noted that a premium rate difference of one percent must be settled by direct contributors who have previously paid their contributions at a three percent rate until December 31, 2022, without interest.


In addition to this, people who are not enrolled in the PMP will get billing statements. The closest PhilHealth Local Health Insurance Office is the only place where payments can be made according to Recoter.


Premiums "shall progressively grow" by 0.5 percent each year in accordance with the UHC Law. The premium rate will gradually rise from 2.75 percent in 2019 to a maximum of 5 percent in 2024 and 2025 as part of this progressive increase. We can remember that PhilHealth ceased raising membership dues for its members last 2021 in order to lower the burden of many Filipinos being impacted by the COVID-19 pandemic.


Investment for the future

A person's health isn't the only thing that may be harmed by illness. it can also have an impact on their money and the finances of their whole family.


For health care, financial risk protection means having the financial resources to cover unexpected medical care costs, having access to health care professionals and facilities where quality medical services are paid for, using the assistance when needed or when doing so, and receiving a significant amount of support. This is not just an assurance but also an investment for future emergencies.


There is an ever-increasing cost of living and extra costs to preserve health as individuals become older. That is why it would always be better if you have a safety net for your future aside from having a health insurance plan.


One of the best options to be future-ready is by getting a home investment. This will not only help you in your emergency finances but can also be a way for you to earn some savings through passive income.


Lumina Homes offers great house and lot packages with its over 50 communities nationwide that are all situated in strategic locations, making it a highly accessible, practical, and sustainable location to make your home investment.


Discover the different communities and home model units that we offer nationwide and visit our website for more information. You can also watch our Lumina Sessions videos on our Official YouTube Channel to know more about home investments.


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