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Sunday, May 5, 2024

Higher cigarette excise tax pushed

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Anti-tobacco advocates and other civil society organizations have warned that the benefits of the proposed Universal Health Care measure would not be realized if Congress succumbs to pressures from the tobacco industry into approving a watered-down bill increasing cigarette excise tax.

New Vois Association of the Philippines president Emer Rojas said it would be difficult for the government to fully implement and achieve the targets of UHC if there would not be enough funds. 

While Congress’ approval of the UHC is a step forward, Rojas said the victory was short-lived after the House of Representative’s Ways and Means Committee approved a measly P2.50 increase in tobacco tax per year.

Earlier, Health Secretary Francisco Duque said the lack of funding for its implementation is one of the challenges that the UHC measure could face.

The bill, which is awaiting the signature of President Rodrigo Duterte to become a law, seeks to enroll all Filipinos under a state-backed health insurance program both as paying and non-paying members.

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For its first year of implementation, Duque said UHC would need a funding requirement of P257 billion, but was appropriated only with P217 billion under the proposed national budget for 2019.

Duque said the funding gap of P40 billion would mean that not all hospitals or health centers as envisioned under the bill would be constructed.

“The UHC is not a silver bullet. It is not a panacea. We have to manage our expectations. Everything is not for free,” he said. “We know that we don’t have infinite resources that is why we have to start from the ground up.”

He said construction of barangay health units in fourth to sixth class municipalities would be prioritized so that patients would not have to troop to hospitals for minor ailments.

“Only 50 percent of our barangays have functional barangay health units. Under the UHC, we would have one barangay health unit for every 3,000 to 4,000 patients and one city or rural health unit for every 20,000 patients. We would have health services at the lower level so that there would be congestion in hospitals,” the Health chief said.

A barangay health unit is manned by at least two healthcare professionals, which include a nurse and a midwife, while rural and city health units are manned by around 13 to 14 healthcare professionals, including doctors.

Duque said they are banking on the passage of a measure increasing tobacco taxes as well as the government meeting its annual target of 10 to 12 percent growth in tax collection for the funding of the UHC.

The Department of Budget and Management, he added, likewise gave an assurance that it would restore the DOH’s proposed P33-billion budget for its Health Facilities Enhancement Program for 2019.

“This restoration is good news and we are looking forward to it,” Duque said.

PhilHealth independent director Anthony Leachon echoed Duque’s sentiments, saying the UHC, without sustainable funds, is a hollow law.

“We will fail the Filipino people and the government,” Leachon said.

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