MANILA (2nd UPDATE)- The scheduled hike in Philippine Health Insurance Corp (PhilHealth) contribution will not push through this year, according to a memorandum released by Malacañang, citing an order by President Ferdinand Marcos Jr.

The premium rate for PhilHealth was supposed to increase this year to 4.5 percent from 4 percent, based on Section 10 of the Universal Health Care Act.

Marcos instructed PhilHealth to defer the hike based on the current economic conditions, the memo said.

“In light of the prevailing socioeconomic challenges brought about by the COVID-19 pandemic, and to provide financial relief to our countrymen amidst these difficult times, please be informed that the President has directed the PhilHealth to suspend the above mentioned increase in premium rate and income ceiling for CY 2023, subject to applicable laws, rules and regulations,” the memo states.

In a joint statement released Monday night, the Department of Health and PhilHealth said they already received the President's memorandum.

The two agencies said the matter will be discussed on Wednesday, and more information will be made available after.

"The DOH and PhilHealth recognize the suspension is intended to help our kababayans cope with the increasing prices of commodities caused by inflation," the statement read.

"Such moratorium in increases in premium contributions have been done in years 2020 and 2021. This was in accordance with directives of the Office of the President, and in recognition of the effects of the pandemic during those years," they said.

• DOH, PhilHealth to discuss OP memo on suspension of premium contribution hike

HOW WOULD THIS AFFECT PHILHEALTH'S PROGRAMS?

Rey Balena, the senior manager of PhilHealth's corporate communications team, said the suspended rate hike would have a slight effect in the insurer's programs.

The rollout of PhilHealth's benefits under its plans would only have some "adjustments" when it comes to its implementation.

"Hindi natin sinasabi na hindi na tuloy-tuloy. Sinasabi natin na magkakaroon lamang ng adjustment sa implementation," said Balena during a Teleradyo interview.

"Tuloy-tuloy ang pag-implement ng ating programa. Sa ating benepisyo naman, makakaasa naman ang ating mga miyembro na ang current level of benefit ay masu-sustain. Mandato rin yan sa Universal Healthcare Law," he added.

Other adjustments under its benefit plans will be discussed on Wednesday, he said. But he mentioned that among those that will be affected are the out-patient therapeutic care for severe acute malnutrition and for mental health.

Their COVID-19 package will not be affected by the deferment of rate hikes.

In 2021, the administration of former President Rodrigo Duterte also suspended the scheduled rate hike due to the pandemic.

Several business groups have lobbied for the suspension of the contribution hike citing inflation and other economic woes.

— With a report from Alvin Elchico, ABS-CBN News

• PhilHealth says looming contribution hike to be retroactive from January
• DOH, PhilHealth to discuss OP memo on suspension of premium contribution hike