Title
Increase Medicare Benefits and Contributions EO 365
Law
Executive Order No. 365
Decision Date
Jul 28, 1989
Executive Order No. 365 increases Medicare benefits in the Philippines to address the rising cost of hospitalization, with specific rates for different hospital categories, and proposes an increase in monthly contributions to ensure the long-term viability of the Health Insurance Fund.

Encouragement for Medical Practitioners and Hospitals to Support Benefit Increases

  • Medical and dental practitioners urged to charge fees not exceeding the Medicare professional fee ceilings.
  • Hospitals encouraged to maintain reasonable rates for Medicare patients.
  • Aimed at preserving the Health Insurance Fund and ensuring meaningful benefits.

Funding through Health Financial Assistance Program for GSIS Medicare Beneficiaries

  • Increases in GSIS Medicare benefits funded by budgetary savings from national government agencies, local government units, and government corporations.
  • Department of Budget and Management tasked with allocating funds from 1989 savings and subsequent budgets.
  • Assistance amount limited to the difference between projected revenues and disbursements plus reserve to cover one year of claims.
  • Joint rules to be promulgated by the Department of Budget and Management, Philippine Medical Care Commission, and GSIS.

Contribution Rates and Bases for GSIS and SSS Members

  • Contributions set at 2.5% of monthly salary, equally shared by employer and employee.
  • SSS contributions set according to salary brackets with graduated employee and employer shares.
  • Maximum contribution base of P1,000 maintained until December 31, 1990, then increased progressively to P3,000 by 1993.
  • Continuation of actuarial studies by SSS and GSIS to ensure long-term viability of the Health Insurance Fund.

Repeal of Inconsistent Rules and Effective Date

  • All prior orders and regulations conflicting with this Executive Order are repealed or modified.
  • The Executive Order took effect on August 1, 1989.

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