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PhilHealth: Negligent employers face hefty fines, penalties

MANILA, Philippines – The Philippine Health Insurance Corporation (PhilHealth) on Thursday, April 23, warned negligent employers that they face hefty fines and penalties for failure to fulfill their obligations to their employees and to the state-run health insurer.

PhilHealth president and CEO Alexander A. Padilla said in a statement that he was prompted to issue the warning after PhilHealth received reports on erring employers.

“We do not want any employee or their dependents to experience non-availment of PhilHealth benefits because of the employers’ negligence. That is why we are issuing this reminder for the benefit of over 13 million employees, both in the public and private sectors," Padilla said.

The negligent employers do not remit the premium contributions deducted from a member’s monthly salary; do not remit the correct amount promptly; or do not submit the required remittance reports on schedule. 

Erring employers face penalties of at least P5,000 ($113) multiplied by the total number of employees for failure or refusal to register or deduct PhilHealth premium contributions. 

They will also be required to pay a fine of at least P5,000 ($113) but not more than P10,000 ($126) multiplied by the total number of employees for refusal or failed to remit and report contributions.

PhilHealth said delinquent employers are those who have missed monthly premium contributions in behalf of its employees for at least one month within a 6-month period. 

Under-remitting employers are those who remitted and reported contributions that are less than the prescribed amount or those who remitted accurate contributions but did not include all their employees. 

According to Padilla, failure of employers to remit the required contributions and submit remittance reports shall make them liable for reimbursement of payment of a properly filed claim of their employees, as prescribed under Section 18(d) of the Revised Implementing Rules and Regulations of the National Health Insurance Act of 2013.

Under Circular No. 003, s-2015, PhilHealth stressed its authority to recover from employers  the full amount of properly filed claims by employed members and their dependents who were later found to have no qualifying contributions.

The circular defines non-remitting employers as those who have not remitted any premium contributions to PhilHealth from the start of its operations or for 6 months or more.

Non-reporting employers are those whi may or may not have remitted premium contributions and have not submitted any report for at least one month within a 6-month period.

The Social Security System (SSS) had earlier issued the same warning to delinquent employers, as it cited the fate of 14 companies convicted for violating Republic Act 8282 or the Social Security Act of 1997. – Rappler.com

US$1 = P44.2