House OKs PhilHealth reform bill, cuts premium rate

The House of Representatives has approved on third and final reading a bill that reduces the PhilHealth premium contribution rate from 5% to 3.5%, aiming to strengthen the country's healthcare system.

House Bill 11357 amends Republic Act No. 11223 or the Universal Health Care (UHC) Act, ensuring adjustments in the PhilHealth premium contribution rate will be based on actuarial studies reviewed by an independent body and require congressional approval.

The bill mandates that Overseas Filipino Workers (OFWs) no longer have to pay their contributions, with 50% covered by employers and 50% by the government.

It also caps PhilHealth's administrative expenses at 7.5 percent of total reimbursements or healthcare costs paid in the previous year and fosters competition and innovation through public-private partnerships.

Local government units are granted authority to establish Special Health Funds, while the bill proposes the formation of an UHC Coordinating Council co-chaired by key secretaries to oversee implementation.