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Executive Orders

Increasing Benefits and Monthly Contributions Under the Philippine Medical Care Plan and Providing For A Health Financial Assistance Program

Executive Order No. 365

EXECUTIVE ORDER NO. 365 August 1, 1989

INCREASING BENEFITS AND MONTHLY CONTRIBUTIONS UNDER THE PHILIPPINE MEDICAL CARE PLAN AND PROVIDING FOR A HEALTH FINANCIAL ASSISTANCE PROGRAM

WHEREAS, the support value of Medicare benefits has been dissipated over the years and the present benefit ceilings are insignificant given the current cost of hospitalization;

WHEREAS, while the rates of contribution are the same the Medicare benefits ceilings are higher for Social Security System (SSS) Medicare beneficiaries than for Government Service Insurance System (GSIS) Medicare beneficiaries;

WHEREAS, the government desires to increase the Medicare benefits to a meaningful level;

WHEREAS, actuarial studies show that the Health Insurance Fund administered by the GSIS for GSIS Medicare beneficiaries cannot fully provide for the needed funds to finance the increased benefits;

WHEREAS, actuarial studies also show that while the Health Insurance Fund administered by the SSS for the Medicare beneficiaries in the private sector can finance the increase in benefits until 1994;

WHEREAS, the present Medicare contribution rate of 2.50% of the monthly...

EXECUTIVE ORDER NO. 365

Increasing Benefits and Monthly Contributions Under the Philippine Medical Care Plan and Providing for a Health Financial Assistance Program

- The support value of Medicare benefits has diminished over time, and the current benefit ceilings are insignificant given the high cost of hospitalization. (Whereas clause 1)
- The Medicare benefit ceilings are higher for Social Security System (SSS) beneficiaries than for Government Service Insurance System (GSIS) beneficiaries, despite having the same contribution rates. (Whereas clause 2)
- The government aims to increase Medicare benefits to a meaningful level. (Whereas clause 3)
- Actuarial studies show that the Health Insurance Fund administered by the GSIS cannot fully finance the increased benefits for GSIS Medicare beneficiaries. (Whereas clause 4)
- Actuarial studies also show that the Health Insurance Fund administered by the SSS can finance the increased benefits for private sector Medicare beneficiaries until 1994. (Whereas clause 5)
- The current Medicare contribution rate of 2.50% of the monthly salaries, shared equally by the employer and employee, has remained unchanged since 1972. (Whereas clause 6)
- The maximum contribution base of P1,000 is unrealistic considering the present minimum salaries/wages received by employees. (Whereas clause 6)
- The current monthly contribution per Medicare member, ranging from sixty centavos (P.60) to twenty five pesos (P25.00), which covers the member and legal dependents, is no longer commensurate with the increased benefits the Program will provide. (Whereas clause 7)

Provisions:

- The Medicare benefits for both GSIS and SSS Medicare beneficiaries are increased, not to exceed the rates specified by hospital category (Primary, Secondary, Tertiary) for various items of hospitalization. (Section 1)

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