BY BUENA BERNAL
POSTED ON 01/30/2014 5:18 PM | UPDATED 01/30/2014 6:50 PM
POSTED ON 01/30/2014 5:18 PM | UPDATED 01/30/2014 6:50 PM
MANILA, Philippines – Militant labor group Kilusang Mayo Uno
(KMU) asked the Supreme Court (SC) on Thursday, January 30, to void the 2014
hike in premiums of the country's state-run health insurance corporation.
The Philippine Health Insurance Corporation (Philhealth)
increased premium contributions on January 1.
Calling the premium increase an abandonment of government
responsibility to subsidize healthcare, the group also appealed for the
issuance of a temporary restraining order (TRO) on the hike while the Court
assesses its appeal.
Under the new scheme, the lowest monthly premium for members
whose salary ranged from P8,999.99 and below increased from P100 to P200.
KMU said the premium hike unduly places a burden on the poor
majority, citing government statistics that some 30%-40% of the population live
on a monthly salary of P6,500.
"Indeed, the earnings intended for food requirement and
other basic needs of the petitioners would be reduced as it would be utilized
for the purpose of defraying the amount needed for the Philhealth Contributions
Increase," read the petition.
The coverage of the hike only included premium-paying members
and overseas Filipino workers.
KMU said this scheme was "unreasonable and
inequitable" due to its selective coverage. The increase, the group said,
did not involve those whose salary ranged from P8,999.99 and above.
Hiding
behind the cloak of social equity
According to Malacañang, there is a need to raise Philhealth
premiums to ensure a sustainable "social protection program" for
those who need the assistance of the government.
Presidential Communications Operations Office Secretary
Herminio "Sonny" Coloma Jr earlier defended the new contributions
scheme, saying the increase only amounts to more than P3 a day.
He added that the hike will not affect "sponsored"
members whose premiums are fully subsidized by the state.
The petitioner before the High Court, however, said the
scheme simply hides behind the cloak of social equity.
"It is disgusting that Philhealth has been presenting
its extortion of members' hard-earned money as a form of charity to less
affluent Filipinos," said KMU Chairperson Elmer "Bong" Labog in
a statement.
Labog added that the increase was unnecessary.
"There is no need to expand Philhealth's services and
improve its services if the Aquino government has been providing accessible
health care," he said.
Absence of
study
KMU said in its appeal for a TRO that the premium increase
violated Republic Act (RA) 10606 or theNational Health Insurance Act of
2013.
The law, KMU said, required an actuarial study prior to the
fixing of the rate contributions.
PROTEST. A woman with goiter
protests against the 1.48-billion bonuses released in 2012 to PhilHealth
employees, Oct 18, 2013. File photo by Buena Bernal/Rappler
Lofty
bonuses
KMU also cited in its petition previous reports by the Commission on Audit (COA), citing
the release of bonuses to Philhealth executives, employees, and contractors. COA
had ordered government-owned and controlled corporations, including Philhealth,
to return
P2.3 billion in unlawful bonuses they paid to their executives in 2012.
Philhealth, for its part, said it is willing to defend the legality of the bonuses before the SC.
On a different set of disbursements, Philhealth maintained
they were also legal. (READ: Philhealth says P1.48-B bonuses questioned by COA legal)
Dr Israel Francis Paragas, PhilHealth vice president for
corporate affairs, said RA 7875 which was later on amended by RA 10606
authorizes the health insurance company "to fix the compensation of and
appoint personnel as may be deemed necessary."
KMU, however, said the releases "shows how greedy for
profit government is."
– Rappler.com
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