1.0 Purpose

This Circular is issued to:

1.1 Prescribe  the  guidelines  on  the  adjustment  in the  employer  (government) share in the HIP contributions to the PhilHealth effective January 2018 and onwards; and

1.2 Provide information on the PhilHealth ™s Primary Care Benefits.

2.0 Adjustment in the Employer (Government) Share in the HIP Contributions

2.1 The employer (government)  share in the HIP contributions to the PhilHealth of all National Government Agencies (NGAs), including SUCs, Constitutional Offices,  GOCCs,  and LGUs, effective  January  2018 and onwards  shall be based on Item IV of PhilHealth Circular No. 2017-0024^[1]   dated September 11, 2017.

As indicated in said PhilHealth  Circular, the monthly premium contributions shall be at the rate of 2.75% computed straight based on the monthly basic salary of individual employees, with a salary floor of P10,000 and a ceiling of P40,000, to be equally shared by the employees and their employer.

The  computation   of  the  premium   contributions   shall  be  based  on  the following table:

Month ly Basic S a l ar y ( N I BS )	Adjus t ed Mont hly Premium per It em IV of Phil Hea l t h C i rcul ar No. 2017-0024
	2 . 75% of MB S !	Emp l oyee Share	Emp l oyer Share
P10 , 000. 00 and bel ow	P275 . 00	P137 . 50	P137 . 50
P10 , 001 to P39, 999. 99	P275 . 02 to P1 , 099. 99	P137 . 51 to P549 . 99	P137 . 51 to P549 . 99
P40 , 000. 00 and above	P1 , 100. 00	P550 . 00	P550 . 00

2.2 Under Republic Act (RA) No. 10964 or the FY 2018 General Appropriations Act (GAA), the funding requirements for the employer (government) share in the HIP contributions of government employees of NGAs concerned are provided through the following:

2.2.1  Agency Specific Budgets - The requirements based on existing rates of  government  contributions  to  PhilHealth  are  provided  under  the agency-specific budgets and included in the comprehensive release of allotments through the GAA as Allotment Order.

2.2.2 Miscellaneous Personnel Benefits Fund (MPBF) - The amounts required to adjust the employer (government) share in the HIP contributions effective January 2018, which is based on the rates indicated under Section 2.1 of this Circular, are included in the MPBF.

2.3 For GOCCs, the amounts required for the adjustment in the employer (government)  share in the HIP contributions of government employees shall be charged against their respective approved Corporate Operating Budgets under the Personnel Services expense. GOCCs are prohibited to source the payment for the purpose from the following:

2.3.1  Loans; and

2.3.2  Subsidy  from the National  Government  for the GOCC'  s operations, except  for  subsidy  income  or  subsidy  given  by  the  Department  of Budget and Management for the adjustment of HIP contributions.

2.4 For  LGUs,  they  are  enjoined  to  implement  the  adjusted  employer (government) share in the HIP contributions of government employees to the PhilHealth as provided under Section 2.1 of this Circular.

In  this  regard,  all  LGUs  are  likewise  enjoined  to  adopt  the  appropriate measures in their respective FY 2018 annual budgets and onwards, subject to the provisions  of RA No. 7160 or the Local Government  Code of 1991, and other existing budgeting rules and regulations.

3.0 Primary Care Benefits

The primary care benefits under the National Health Insurance  Program, which are being provided to and availed by certain member-groups,  shall be extended to  government   employees   who  are  PhilHealth   members  under  the  Formal Employed Sector. The details of the primary care benefit are described in Annex A of this Circular.

4.0 This Circular shall take effect immediately.

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^[1] Adjustment in the Premium Contribution of the Employed Sector to Sustain the National Health Insurance Program (NHIP)

^[2] If  an  excess  of  a  centavo  will  occur  when  equally  sharing  the  computed  monthly  premium contributions, the excess centavo shall be deducted from the employee ™s share.