As the competitive landscape of the Philippines' job market continues to evolve, employers are constantly seeking innovative ways to attract and retain the best talents. One critical method that has emerged is the provision of private health insurance. This is not just another corporate benefit, but a strategic tool that can significantly impact staff commitment and loyalty.
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 not only desirable but essential.
The public healthcare system in the Philippines (PhilHealth)
All employees in the Philippines are entitled to public health insurance - PhilHealth. This covers basic in-patient and emergency care.
The Philhealth contribution is 4% 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.
Is Philhealth enough for the employees in the Philippines?
Legally, yes. As 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.
So let's look into why private health insurance in the Philippines is so important for employees.
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.
Here are some common reasons why private healthcare is seen as more valuable:
- 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
There are three steps to providing private health insurance in the Philippines:
- Have a legal entity in the Philippines
- Sign up with a private health insurance provider
- Pay the quarterly insurance payments
With RecruitGo, providing private health insurance is as easy as ticking a box in the onboarding form - RecruitGo is a premium partner of several private health insurance providers and your employees get to benefit from our corporate deals.
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. Since private health insurance is so important for Filipino employees, you'll make up for the expense by retaining the employee for longer and making them feel appreciated.