House OKs PhilHealth premium cut to 3.5%, caps admin costs at 7.5%

On Wednesday, the House of Representatives approved a bill to reduce PhilHealth premium contributions from 5% to 3.5%, with adjustments based on actuarial studies evaluated by an independent body.

House Bill 1371 also mandates that Overseas Filipino Workers will not have to pay their full PhilHealth contribution, as half is covered by employers and the government.

The bill aims to strengthen the Philippine healthcare system by improving efficiency and equity, while capping PhilHealth's administrative expenses at 7.5% of total expenditure for members' benefits.

PhilHealth has faced scrutiny for maintaining a high premium rate despite having an estimated P150 billion in surplus reserve funds, prompting lawmakers to push for amendments to the Universal Health Care Act.

The Senate had already approved its version of the bill in August 2024, paving the way for potential enactment into law soon.