Action for Economic Reforms calls for deferment of amendments to Universal Health Care Law; supports DOF position on premiums

PRESS STATEMENT 2 June 2025 Reference: Alen Aglosolos (0922 820 9659)

Action for Economic Reforms (AER) has formally reached out to the Senate panel of the Bicameral Conference Committee, appealing for the deferment of the passage of the amendments to the Universal Health Care Law.

The UHC Law, also known as the Republic Act 11223, was passed in 2019 and is currently being amended by House Bill No. 11357 and Senate Bill 2620. AER has expressed grave concern over the potential crisis that the health system would face if the proposed amendments were to pass.

One of the main features of the proposed amendments that the group believes to have catastrophic consequences is the reduction of PhilHealth premiums from 5% to 3.5% by 2026, amidst expansion and improvement of PhilHealth benefits that will require increased and sustainable financing.

The proposed reductions in premiums, alongside a zero budget allocation for PhilHealth in 2025 and the PHP 60 billion funds transferred to the national treasury, raise serious concerns about PhilHealth’s financial capacity, which could jeopardize the sustainability of benefit delivery.

This concern is shared by the Department of Finance (DOF). Thus, AER supports the position of DOF to retain the current PhilHealth premium rates and improve the benefit packages. AER cites the DOF position that the reduction of premium rates will undermine the financing of the expansion of benefits that the government and PhilHealth have committed to.

A decline in PhilHealth funds due to the decreased premium will result in a failure to reduce the out-of-pocket health expenses, especially of the lower-income class. AER understands that Congress’ proposal of a decrease in premium rates stems from an assumption that PhilHealth has excess funds.

However, from the oral arguments presented during the Supreme Court hearing on the transfer of PhilHealth funds to the national government, it was established that PhilHealth’s insurance contract liabilities exceeded its reserve fund. Additionally, PhilHealth is further increasing benefits.

AER also points out that aside from the adjustments in premium rates, other amendments remain contentious, such as those on health technology assessment, competition in the benefit delivery system, health information, and governance. The call for deferment of the passage of the amendments also acknowledges that the new PhilHealth leadership is in the process of reviewing its policies to provide a more grounded framework for ongoing and future reforms.

Most importantly, the pending Supreme Court decision on the PhilHealth fund transfer will impact the interpretation and application of the UHC Law. In this light, AER maintains that it would be prudent and wise for Congress to pause the amendments and allow changes to take their course, learn from the Supreme Court ruling, and assess the UHC Law first rather than rush to legislate questionable provisions.

AER has called on the Senate Bicam Conferees – Senator JV Ejercito, Senator Bong Go, Senator Bato Dela Rosa, Senator Pia Cayetano, and Senator Risa Hontiveros – to consider the proposal for deferment, adopt a cautious and evidence-based approach, and take a stand in defending and ensuring a UHC that upholds the right to health and the dignity of all Filipinos.