The current global crisis is one of the most serious to hit the world economy since the Great Depression. At a time when the needs and demands for social protection are dramatically heightened, governments are contending with diminished revenues and constrained spending.

To ensure the financial protection of its members, the Philippine Health Insurance Corporation (PHIC) declared across-the-board increases in varying degrees in the benefit entitlements of its members. Effective 5 April 2009, inpatient care benefit ceilings have been raised such that the aggregate effect on annual benefit payments is expected to increase by 35 percent. This is the first time in seven years since the last increase in 2002 and the most expansive since the start of social health insurance in the Philippines almost forty years ago.

This initiative was in response to the urgent need of PHIC members to cope with the rising cost of hospitalization. While increases in allowances for hospital room and board fees are moderate, the benefit enhancements for other items were more than 100 percent, as in the case of drugs and medicines for some types of illnesses in participating primary, secondary and tertiary hospitals. The new inpatient package also provides higher allowances for x-ray and laboratory exams, and higher ceilings for professional fees of accredited physicians.

The increase in benefit ceilings does not entail a corresponding increase in the contributions of PHIC members.

The PHIC is the mandated agency to provide universal coverage for social health insurance. About 84 percent of the population is already covered by the PHIC, and over 90 percent of all hospitals in the country are accredited by the PHIC.

Source: Philippine Health Insurance Corporation

Implementation date: 04.2009