Smiles’ Commitment To Paying Higher PhilHealth Contributions 2020-2025

31-Jan-2020
Smiles’ Commitment To Paying Higher PhilHealth Contributions 2020-2025

Have you heard about the rise in PhilHealth contributions?

Here’s Everything You Need to Know:

  1.  Does Smiles Provide PhilHealth and HMO?
  2.   What is PhilHealth’s New Contribution Schedule?
  3.  Who are Direct Contributors?
  4.  The Implementation of Universal Health Care Law
  5.  What About Self-Paying Members?
  6.  What About Employed Persons with Disability?
  7.  The Benefits of New Contribution Schedule
  8.  What Happens If You Don’t Pay?

Smiles Provides PhilHealth & HMO

Our people make everything we do possible, that’s why since 2019, Smiles has been committed to paying both employer and employee contributions for PhilHealth (along with PAGIBIG).

Not only that but we provide HMO (private healthcare) to all employees because there are things PhilHealth can’t yet cover, such as private hospital rooms, annual checkups, and preventative treatments. 

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PhilHealth’s New Contribution Schedule

Recently, The Phillippine Health Insurance Corporation (PhilHealth) released a new contribution schedule.

The changes emerged in accordance with the Universal Health Care Law of 2019 and its implementing rules and regulations. 

Despite a significant increase in the contributions required, at Smiles, we stand by our commitment because we believe in better healthcare for everyone!

The rise in contributions is essential to sustaining and enhancing PhilHealth benefits and services to its 108 million-strong members and beneficiaries here and abroad. 

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Who Are Direct Contributors to PhilHealth?

All of Smiles employees are classified as Direct Contributors to PhilHealth.

Smiles On Demand PhilHealth Contributions

Direct Contributors simply refers to anyone gainfully employed or bound by an employer-employee relationship. 

This includes Kasambahays, self-earning individuals, practicing professionals and Overseas Filipino Workers too.

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Implementation of Universal Health Care Law

In the PhilHealth Circular No. 2019-0009 published on November 23, 2019, the premium rate for Direct Contributors was 2.75% of their monthly basic salary (with an adjusted ceiling of P50,000).

However, in January 2020, the premium rate was raised to 3% as required by the Universal Health Care Law.

The rate will then be adjusted incrementally by 0.5% over the next 5 years until we reach the 5% limit in 2025.

That’s not all, the salary ceiling will also rise from P50,000 to P100,000 over the five-year period, with income floor remaining pegged at P10,000.

“The increase is necessary to strengthen our fund’s ability to sustain and expand the benefits for the members. It should not be seen as an unnecessary expense, but rather an investment in the health of their family”. 

BGen. Ricardo C. Morales, PhilHealth President and, Chief Executive Officer

For some workers in the Philippines earning less than the salary floor (P10,000), their contributions will be calculated using the minimum threshold.

However, anyone earning the set ceilings/limits shall pay premiums based on the set ceiling. This policy also applies to seafarers.

The new premium schedule took effect on December 7, 2019, 15 days after the publication of its Circular 2019-0009.

Here’s how it’s going to play out over the next 5 years:

New PhilHealth premium schedule.

Employers will pay the PhilHealth premiums of their employers who earn under P50,000.

Any employees earning over this amount will be deducted their fair share of contributions from their salary.

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What About Self-Paying Members?

Self-paying members, professional practitioners, and land-based OFWs will pay their contributions based on their monthly earnings.

To ensure the accuracy of contribution calculations PhilHealth will require the submission of financial records such as:

  • your latest income tax return received by the Bureau of Internal Revenue.
  • duly-notarized affidavit of income declaration.
  • or overseas employment contract as your proof of income.

If a self-paying member fails to do this their contribution will be based on the highest computed rate.

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What About Employed Persons with Disabilities?

For employees living with a disability, contributions are worked out a little differently.

Once registered in the Department of Health’s PWD registry contributions will be divided equally between employers and the National Government.

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What Are The Benefits Of The New PhilHealth Contributions Schedule

Higher contributions to PhilHealth will help ensure the sustainability of the National Health Insurance Fund.

“Service coverage will include preventive, primitive, curative, rehabilitative, and palliative care. Within two years, there will be the outpatient benefits including drug and emergency services”.

Local Health Insurance Office (LHIO) Central Pangasinan chief Madonna Valdez

Madonna Valdez also added to her statement that the new services will cover mental, medical, dental, and emergency services.

Smiles On Demand PhilHealth Contributions

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What Happens if You Don’t Pay PhilHealth Contributions? 

The good news is no one will be denied of PhilHealth coverage due to non-payment of premiums.

If you miss a payment you will be billed monthly with interest as a consequence.

The penalty:

  • for employers, sea-based OFWs, and Kasambahays is a minimum of 3%.
  • for self-earning members, professionals, and land-based migrant worker penalties are capped at 1.5%.

Smiles On Demand commends the Philippines Government for taking this step in the right direction.

The improvement of devolved local health/support systems will give us all another reason to smile. 🙂