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Php35,000.00 salary bracket ceiling. However, it consolidated the two lowest
salary brackets[20] resulting in a minimum annual rate of Php2,400.00.
Thus, the Corporation adjusted the minimum rates for members to Php2,400.00 to
ensure financial sustainability of the Program.
On January 30, 2014, petitioners Kilusang Mayo Uno (KMU), National Federation of
Labor Unions - KMU (NAFLU-KMU), Violeta Espiritu, and Virginia Flores filed the present
petition for certiorari with an application for a Temporary Restraining Order and/or a
Preliminary Injunction against the implementation of the new rates.[21] The petitioners
impleaded President Aquino and the Corporation as respondents.
On March 14, 2014, Migrante International, Connie Bragas-Regalado, Paraluman
Catuira, United Filipinos in Hong Kong (UNIFIL-HK), and Soledad Pillas filed a petitionin-intervention.[22]
THE PETITIONS
The petitioners (KMU, et al.) claim that the assailed circulars were issued with grave
abuse of discretion, arguing: (1) that PhilHealth breached the limits to its delegated
rule-making power because the new contribution schedule is neither reasonable,
equitable, nor progressive as prescribed by the NHIA;[23] (2) that the rate increase is
unduly oppressive and not reasonably necessary to attain the purpose sought;[24] and
(3) that the new rates were determined without an actuarial study as required by the
NHIA.[25]
The petitioners allege that according to the Commission on Audit (COA), PhilHealth
awarded Php1.5 billion in bonuses to its top officials and employees in 2012.[26] They
further allege that the Corporation gave hefty bonuses to its contractors and failed to
prosecute fraudulent claims. They argue that increasing contribution rates would be
completely unnecessary if the Corporation used its funds more judiciously.
The Petitioners-in-Intervention (Migrante, et al.) adopt all of the petitioners'
arguments. They add that Circular No. 0025, s. 2013 violated the Migrant Workers
and Overseas Filipinos Act[27] which prescribed the non-increase of fees charged by
any government office on Overseas Filipino Workers (OFWs).[28]
THE COUNTER ARGUMENTS
The President, through the Office of the Solicitor General (OSG), invokes his immunity
from suit as a sitting Head of State and moved that he be dropped as a partyrespondent.[29]
PhilHealth, through the Office of the Government Corporate Counsel (OGCC), claims
that the increases in premium contributions were supported by three actuarial studies
conducted in 2010,[30] 2011,[31] and 2012.[32] Moreover, it consulted World Bank
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