The importance of private health insurance in the Philippines for retaining top talents

Are you thinking of outsourcing your back office roles to the Philippines? Due to the competitive hiring market, you need to develop a strong hiring strategy to attract and retain top talent. This article will explain the importance of offering private health insurance in the Philippines, as well as provide key insights for effectively navigating the country’s healthcare system.

The public healthcare system in the Philippines (PhilHealth)

Is Philhealth enough for the employees in the Philippines?

All employees in the Philippines are entitled to public health insurance – PhilHealth. This covers basic in-patient and emergency care. The Philhealth contribution is 5% of the gross salary of the employee – divided equally between the employer and the employee. For the sake of calculations, the salary floor is at Php. 10,000 and the ceiling at Php. 80,000, meaning the Philhealth contribution will always be in the range of Php. 400 and Php. 3200.

s an employer, you must provide Philhealth. However, for attracting and retaining talents, it’s likely not enough. When you ask Filipino employees about what matters the most for their employment benefits, they’ll probably say salary first, closely followed by health insurance. Filipino culture also adheres by a hierarchal system which places significant importance on taking care of family members. This means that family plans and additional services will have more value for prospective employees.

RecruitGo can help you determine how competitive the hiring market is for some of the most popular positions for international recruitment in the Philippines. This will allow you to more effectively plan your benefits policy for ensuring that you stand out from other similar employers.

Limits of the PhilHealth system

As an emerging economy, it’s not realistic to expect a government-run healthcare system to be able to cover all the medical needs of its citizens. While it does a decent job at covering the basics, there are many situations where it’s not seen as sufficient:

• Assistance with Serious Illnesses: Private health insurance plays a crucial role by offering financial support during the treatment of significant diseases, including conditions such as cancer or heart disease.
• Coverage for Surgical Procedures: Private health insurance policies often provide financial coverage for surgical procedures, whether these are performed on an inpatient (overnight stay) or outpatient (same-day discharge) basis.
• Support during Hospitalization: Costs associated with staying in the hospital – including charges for the room, meals, and medical services – are generally covered under private health insurance plans.
• Provision for Dental Care: Certain private health insurance plans include dental services in their coverage, which can range from routine check-ups and cleanings to more extensive procedures such as fillings.
• Coverage for Additional Services: Many private health insurance policies also cover auxiliary services, which often include laboratory tests and prescribed medications. This ensures more comprehensive health coverage beyond just basic medical care.

How to provide private health insurance in the Philippines

Private health insurance offers comprehensive coverage that goes beyond the basic state-provided health insurance (PhilHealth). In the Philippines, where public healthcare facilities may be overcrowded and under-resourced, this extra layer of protection is seen as a quasi-essential benefit for any competitive hiring package. There are three steps to providing private health insurance in the Philippines:

1. Have a legal entity in the Philippines
2. Sign up with a private health insurance provider
3. Pay the quarterly insurance payments

RecruitGo is a premium partner of several private health insurance providers in the Philippines. By partnering with our Employer of Record service, your employees get to benefit from our corporate deals which you can tailor specifically based on the key benefits you want to include. Our local team can also advise you on some of the key additions for your plan based on your target demographic.

Cost of private health insurance in the Philippines

The exact cost of private health insurance depends on the age of the employee and the type of health insurance coverage you wish to provide. However, the majority of RecruitGo’s employer of record customers choose a plan that covers all the essentials for roughly US$37 dollars a month. Optionally, similar packages can be provided to the employee’s family members.

While it’s an additional cost for you as an employer, it’s usually a wise financial choice. The overhead costs for outsourcing in the Philippines will still be significantly lower than hiring in similar positions in Western markets. Since private health insurance is an important benefit for Filipino employees, you can also make up for the expense by retaining your employees for longer and making them feel appreciated.

Want to set up a private healthcare plan for your remote teams in the Philippines? Contact us via the form below to get in touch with our local experts!

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