CHALLENGE

The Philippines is a lower middle-income country in Southeast Asia with a population nearing 101 million. Gross domestic product (GDP) posted a 6.6 growth in the last quarter of 2017, driving the economy to grow by 6.7% in total. Despite this positive outlook, income and social disparities persist, as basic social provisions such as quality health care remain generally inaccessible to vulnerable population groups including those in the informal sector (Ulep, 2013). Health systems in many LMICs are funded primarily through out-of-pocket (OOP) payments; and in the Philippines, it remains a major source of financing health care. There is low collection rate of health insurance premiums, especially among the informal sector members. In Puerto Princesa City, Palawan, the Philippine Health Insurance Corporation (PhilHealth) attributes this to the informal sector’s low and irregular income, lack of awareness on PhilHealth programs, lack of technical capability to manage a savings mobilization program among themselves, and the inaccessibility of collection facilities.

INTERVENTION

The project was initiated by the PhilHealth Palawan Local Health Insurance Office that aims to increase the health coverage of informal sector workers, specifically the members of the tricycle operators and drivers’ associations (TODAs) in the city. The project has a capacity building component to ensure that through a savings mobilization scheme, TODA members also become paying members of PhilHealth. In a month, TODA members are required to save a minimum amount of P6.60 ($ 0.13) per day or any available amount. Once their savings reach the amount of P600.00 (approx. $ 12), which is the required quarterly PhilHealth premium, the group treasurer remits the full amount to PhilHealth. Aside from attending regular group meetings, members also benefit from medical check-ups and financial management seminars.

The project lessens the vulnerability of informal sector workers and encourages self-reliance in addressing their own health needs.

Through the savings mobilization programme, the members appreciate the value of savings and develop foresight and group management skills. They also value how health insurance through PhilHealth provides them and their families with financial risk protection and better access to affordable health services.

CASE INSIGHTS

Members of the informal sector, while they have less access to basic infrastructure and social services, can be empowered by developing their capacity and potential to mobilise resources for health savings. Intensive communication and social marketing strategies need to be in place to increase awareness about PhilHealth and prompt enrolment and retaining of membership. Alongside this, the availability and service coverage of PhilHealth needs to be expanded to maximise utilisation and increase availment rates, thereby minimising out-of-pocket spending during health episodes and lessening the financial burden of health care.