Sample computation, guide to new OFW Philhealth contribution

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Philippine Health Insurance Corporation issued the new OFW Philhealth contribution on April 14, 2020.

It was addressed to all Filipinos abroad, and their dependents accredited collecting agents, partners, stakeholders, and all others concerned. The circular was entitled “Premium Contribution and Collection of Payment of Overseas Filipino Members.”

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Below are the frequently asked questions and sample computation for the new OFW Philhealth contribution.

Who is affected by the new Philhealth rates for OFWs?

It covers all OFWs living and working abroad including those on-vacation or those waiting documentation, whether registered or unregistered to National Health Insurance Program:

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  • Land-based OFWs
  • Seafarers and other sea-based workers
  • Filipinos with dual citizenship (RA 9225)
  • Filipinos living abroad
  • Overseas Filipinos in distress
  • Other overseas Filipinos not previously classified elsewhere

Is Philihealth’s contribution required for all OFWs?

Yes. OFWs are classified as direct contributors under the Universal Health Care Law, and therefore, payment and remittance of premium contributions are mandatory.

How is my contribution computed?

The premium of overseas Filipinos shall be computed based on their monthly income, to be paid in Philippine Pesos equivalent.

An OFW must submit acceptable proof of actual income for the computation.

For uniform application, the conversion will be guided by the daily reference exchange rare issued by the Bangko Sentral ng Pilipinas (BSP) through its Reference Exchange Rate Bulletin (RERB). Other currencies that are not included in the BSP-RERB shall be converted first to US Dollar (being the common currency) before converting it to Philippines Peso. Available online conversion sites can be utilized for this purpose.

When will I start paying my Philhealth contribution?

After the determination of the appropriate premium contribution, the member has the option to pay the annual premium in full or pay the initial premium then quarterly thereafter.

CY 2020 is considered a transition year. Payment of P2,400 shall serve as an initial payment. The member can then opt to pay the balance in full or in quarterly payments. The payment settlement period is one year.

By January 1, 2021, the minimum acceptable initial payment is a 3-month premium based o the prescribes rate at the time of payment. Still, the member has the option to pay the balance in full or in quarterly payment; payment period is one year.

What happens if I fail to pay?

A member who fails to pay the premium after the due date set by the Corporation shall be required to pay all missed contributions with monthly compounded interest.

How often do I pay?

While a premium is computed based on monthly income, payment shall be made every 3-month, 6-month, or full 12-month period. For sea-based OFWs, the mode of payment is monthly by salary deduction by their Manning Agencies/Employers.

Advance payment is allowed on the length of a valid contract and on the current applicable premium rate and schedules.

Members abroad will be issued a system-generated billing statement containing due premium contribution and interest if any. However, a Statement of Initial Payment (SIP) shall be issued to a member of the generation of SPA is not yet available.

Sample computation OFW Philhealth contribution

Sample computation OFW Philhealth contribution
Image from Philhealth

 

Sample computation land based OFW
Image from Philhealth
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