The Philippine government has passed legislation which extends health insurance coverage to the indigent. A new entity, the Philippine Health Insurance Corporation (PHIC) has been created with the aim of eventually taking over the expanded Medicare programme.

Previously, Medicare, a compulsory health insurance scheme, covered only employed and self-employed workers and their dependents. The indigent population, which was not covered, is estimated to be around 25 per cent of the population.

The PHIC also plans to introduce cost containment measures such as in-patient education and to pilot test payment mechanisms for paying benefits for out-patient services. At present, due to funding constraints and concerns about the potential for abuse, medical benefits are only available for in-patient services provided by accredited hospitals and physicians.

A transfer of responsibility for the administration of existing programmes from the present agencies to the new PHIC is planned to take place five years from the approval of the implementing rules and regulations.

Source: ISSA, Asia Directors Meeting Nov. 1996.

Reference: Republic Act 7875.

Legislation date: 1995

Implementation date: 00.03.1995