The SUN HK : Advocates call for fixed, voluntary contribution by OFWs to PhilHealth

HK OFWs are among those urging voluntary contributions to PhilHealth

Republic Act 11223 or the Universal Healthcare Law which mandates a 0.5 increase in the contribution rate to the Philippine Health Insurance Corporation (PhilHealth) each year from 2021 to 2025 should be amended to make it more equitable, overseas Filipino workers and their advocates unanimously said in a consultation meeting yesterday, Jan. 30.

The meeting, held both face-to-face and online, was called by Francisco Aguilar, Jr., director of the Foreign Stakeholders and Engagement Bureau of the Department of Migrant Workers. It comes in the wake of an announcement from PhilHealth that it will begin enforcing the law providing a 5% premium on the gross salary of workers earning from P10,000 to P100,000.

Among the amendments pushed by the participants is to remove OFWs from the category of “direct contributors” which obliges them to pay the shares of both the employer and the employee, and restore their flat-rate contribution to PhilHealth.

TAWAG NA!

Prior to the passing of the Universal Healthcare Law, OFWs were charged a flat rate of P2,400. But under the law that was passed in 2019, OFWs were made direct contributors and required to pay the graduated rates, from 2.75% in 2020 to 5% of their gross salary starting this year.

For OFWs in Hong Kong earning the current minimum wage of $4,870 (P34,577), this would mean a mandatory annual contribution of P20,746.20 ($2,922).

Luther Calderon, president of Kabalikat ng Migranteng Pilipino, Inc. (KAMPI), said “dapat siguro hindi na kino consider ang sweldo, isang rate na lang regardless of salary” (It’s probably better not to consider the salary (of a worker), there should be just one rate regardless of salary.

PINDUTIN

Aguilar agreed to the suggestion, saying that while it may be necessary to raise the last fixed rate of P2,400 for OFWs, it may not be fair to make them pay the full 5% required of direct contributors under the law.

But he warned that such a proposal might need intense lobbying, as amending a law is a difficult process and could take time.

Screen grab of the consultation meeting with OFW leaders from all over the world

Other speakers said that on top of mandating a fixed rate, membership to PhilHealth by OFWs should be made voluntary, as most of them are already covered by medical insurance at their workplace, paid for by their employers.

Besides, many of them have family members who are already paying for PhilHealth, so it would be redundant, if not unfair, for the OFWs to fork out a huge sum for a health insurance that does not benefit them, or their dependents.

In the meantime, Calderon suggested OFWs should come out in support of Health Secretary Teodoro Herbosa’s suggestion for a further deferment of the higher PhilHealth contributions this year.

Last year, President Ferdinand Marcos, Jr. suspended the increase of PhilHealth’s premium rate and income ceiling, citing the continuing economic slump from the Covid-19 pandemic.

But early this month, he said he was still studying the premium rate hikes, adding that he wants PhilHealth to show a commensurate increase in benefits to its members.

PhilHealth President and Chief Executive Officer Emmanuel Ledesma, Jr. said at a separate press conference that they will comply with whatever President Marcos would decide on the matter.

However, he warned that a freeze in premiums would mean “a minus P17 billion for the year” for the national health insurer.