6/7/2020 E-Library - Information At Your Fingertips: Printer Friendly 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 elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/62083 4/13

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