SAN FERNANDO CITY, Apr 17 (PIA) — The Philippine Health Insurance Corp (PhilHealth) has began re-imposing interest charges on employers for non-remittance and late remittance of premium contributions.
Pursuant to PhilHealth Circular No. 0004 series of 2013, the country’s health insurance body revived on April 12 its policy on imposing a two-percent monthly interest charge on employers’ late premium payments.
Irene P. Martinez, PhilHealth information officer in Ilocos, said the interest charges are designed to enhance collection efficiency and sustain the country’s health insurance program.
“The increase in collection efficiency will pave the way for an improved benefit package and achieve better health outcomes and true financial risk protection,” she said.
Under PhilHealth rules, employers are required to remit their employees’ monthly premium contributions on or before the 10th calendar day of the month following the applicable month for which the payment is due and applicable.
In case the deadline of payment falls on a Saturday, Sunday or holiday, payment should be made the next working day.
Martinez said contributions paid beyond the due dates will automatically earn a two percent monthly interest charge.
“If remittances are paid on time but are found to be insufficient, the balance or deficit amount will also be charged with interest. In cases where premium overdue exceeds P1,000,000, the defaulting employer may request the Corporation in writing for its payment including interests in installment manner,” Martinez clarified.
In 1999, policy issuances were released to strictly implement the imposition of interest and surcharges on late payments of premium contributions. But in 2002, PhilHealth Circular No. 15 was issued providing procedures on settlement of premium overdue which led PhilHealth to relax the implementation of the two percent monthly interest.
Meanwhile, PhilHealth Ilocos has collected around P965 million premium contributions and paid claim reimbursements amounting to P2.7 billion in 2012. (MCA/MBR-PIA 1 La Union with reports from PhilHealth-R1/Irene P. Martinez)