After OFW rate hike draws ire, PhilHealth suspends collections

The Philippine Health Insurance Corporation (PhilHealth) said on Monday, May 4, it is temporarily suspending collections for "all direct members" after its directive to increase the mandatory contribution of overseas Filipino workers (OFWs) to 3% drew flak.

In an interview with DZMM, PhilHealth President and CEO Ricardo Morales said that they imposed a moratorium on collections. "May moratorium tayo sa collection. Obviously, paano kokolektahin iyon kung walang suweldo ang tao," Morales said. (We have imposed moratorium on collections. Obviously, how can we collect contributions if people don't have salaries.)

Asked for clarfication if the moratorium applies to all, Morales told Rappler, "Originally until May 30, but now extended for [the] pandemic period. For all direct members."

As of Sunday, May 3, an online petition urging PhilHealth to scrap its directive to increase OFW contributions has collected more than 300,000 signatures since the campaign started in late April.

Their petition assailed PhilHealth Circular No. 2020-0014 dated April 2 which covers Filipinos abroad, says that for OFWs with monthly salaries between P10,000 and P60,000, their monthly PhilHealth contribution will be 3% of their salaries, up from 2.75% in 2019.

The monthly premium will increase by 0.5 percentage points every year afterwards until it reaches 5% by 2024.

The circular said that OFWs "are classified as direct contributors" under Republic Act No. 11223 or the Universal Health Care Act. Because of this, PhilHealth said, "payment and remittance of premium contributions is mandatory."

The petition said that it is "already too much of them to ask for an interest rate and a penalty which is very unfair and inhumane for those who travel away from their families to work."

"It is very unfortunate that they call OFWs modern heroes and yet they penalize us with such directives," it added.

A joint statement of over 100 Filipino migrant groups worldwide also opposed the proposed collection, saying the increase "overburdens OFWs who are already troubled by retrenchments and loss of income due to the COVID-19 pandemic and recession."

The groups then demanded a stop to the mandatory Philhealth premium exaction, enforcement of a "moratorium on all state exactions" during the coronavirus pandemic, removal of punitive penalties, and junking of the overseas employment certificate.

Meanwhile, in the same interview with DZMM, Morales denied that PhilHealth will bar OFWs from leaving the country if they fail to settle their premiums first. – Rappler.com

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