Sen. Mark Villar has filed Senate Bill No. 2568, which seeks to provide free, mandatory health maintenance organization (HMO) coverage for government employees.
The measure, titled “An Act Mandating Free Health Maintenance Organization (HMO) Coverage for Government Employees,” was filed in the Senate during the Second Regular Session of the 20th Congress. The proposed benefit would supplement existing PhilHealth coverage. It would help government workers pay for medical consultations, treatment, hospitalization and other healthcare expenses.
The explanatory note cites Article XIII, Section 11 of the Constitution: “The State shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health, and other social services available to all the people at affordable cost.”
The note states that PhilHealth aims to provide health insurance coverage to all Filipinos, but that its coverage may not be sufficient for other medical expenses. It names emergencies and serious illnesses requiring hospitalization as examples. Government employees may therefore have to pay substantial out-of-pocket expenses, which the note says can strain household finances.
The bill proposes mandatory HMO coverage as a complementary measure to existing health insurance benefits. The note says the benefit is intended to facilitate access to essential medical services, reduce out-of-pocket healthcare expenses and provide greater financial protection against unforeseen medical costs. It adds that the coverage may also promote preventive health care, encourage timely consultation and treatment, and support employees’ recovery from illness.
In a statement on Tuesday, Villar said: “Our government employees are valuable partners for promoting progress and bringing services to the public. It’s just right that their health and welfare are ensured, especially in times they are ill or during medical emergencies.”
Existing government support
Two programs already help government workers pay for HMO-type benefits. The Department of Budget and Management (DBM) issued Budget Circular No. 2024-6, which gives qualified civilian government personnel an annual medical allowance of up to ₱7,000.
The allowance covers regular, casual, contractual, appointive and elective employees, whether full-time or part-time. It can be given as HMO coverage through a government agency or an employee organization. Employees who use their own HMO providers, or who have already paid for medical services, can receive it in cash, based on the DBM’s guide on the allowance.
The Government Service Insurance System (GSIS) also offers the Ginhawa Health Assistance Loan, known as G-Health. The zero-interest loan lets eligible members finance their HMO premiums.
Villar’s bill would institutionalize mandatory free coverage instead of relying only on a limited allowance or repayable financing.
