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Finally, HMO for gov’t workers
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Finally, HMO for gov’t workers

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Believe it or not, most civil servants, especially those working at the executive branch of government, never had health maintenance organization (HMO) protection as part of their employment package. It’s thus not surprising that many of them, especially those in the rank and file, have to borrow from loan sharks or pawn assets when there’s a medical emergency.

This will finally change in 2025, as P9.57 billion has been earmarked in the proposed National Expenditure Program submitted to Congress as medical allowance for government workers, Budget Secretary Amenah Pangandaman told Biz Buzz.

Cognizant that Philippine Health Insurance Corp. benefits alone won’t suffice, a medical allowance of up to P7,000 a year will be granted to each qualified civilian personnel as subsidy to secure HMO-type benefits—of course subject to the conditions and guidelines to be issued by the Department of Budget and Management (DBM) or the Governance Commission.

To date, only those working at the Senate, legislative and other constitutional offices enjoy HMO protection, Pangandaman noted.

With the new allotment, the remaining government workers—numbering around 1.37 million, of whom 900,000 are public school teachers— would all be HMO-protected.

She noted that under the Magna Carta for Public School Teachers, these educators should have been given such medical benefits long ago.

But is the P7,000 annual premium enough to give ample coverage? It’s still lower than what many private corporations typically pay for their employees’ HMO premium.

Pangandaman said that upon checking the HMO space, a P7,000 premium is sufficient to cover some medical examinations and certain medical benefits like emergency room coverage. Once pooled, premium payments will amount to P9.57 billion, which should be enough for medical insurance companies to work on a decent package, she reckoned.

The allotment for HMO coverage is also part of the reason why the DBM’s miscellaneous personnel benefits fund (MPBF) would surge by 484.6 percent in the proposed 2025 government budget. Come 2026, however, HMO expense will be included in the budget of respective line agencies.

Meanwhile, a total of P70 billion has been included in the 2025 MPBF budget to ensure funding for the salary increases already approved by President Marcos.

Another P6.15 billion will be set aside for the implementation of cash allowances, “hardship” pay and reclassification of positions for teachers. This is broken down as follows:

• P2.74 billion for the reclassification of positions to address the backlogs of promotions in the current systems;

• P3.41 billion for the first implementation of the Expanded Career Progression System, which will provide a 10-percent rate on promotions.

It’s a win for government workers, many of whom forgo higher-paying job opportunities to help make a difference in the bureaucracy. —Doris Dumlao-Abadilla

Pariah in our midst

A Filipino-Chinese businessman (FCB) who has gained an unsavory reputation for failing to complete big-ticket projects is becoming more of a pariah in local banking and financial circles.

Aside from creditors running after him with a string of estafa and collection cases, it appears that the new management of listed firms he used to control has unearthed dubious transactions that have enriched the albeit still low-key businessman.

This is why even more charges may soon be brought against this young businessman who once appeared—even if for just a short while – on the Philippines’ rich list.

It appears that FCB’s modus operandi is to attract investors to his company with flowery words and promises of substantial returns from supposedly game-changing projects.

However, once FCB gets the money, he will immediately cause its release as advances to an ultimately fictional investment.

To cover up this chicanery, he will cause the impairment—and thereafter writing off—of the nonexistent investment. A clean getaway—or so he thinks.

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It remains to be seen, however, if he will actually see the inside of a cell or will get away scot-free in the end. Abangan!

—Tina Arceo-Dumlao

Shunning Chinese debt

You’ve probably read from international news how the Chinese debt market is attracting a lot of global interest from foreigners looking for cheap credit. While most central banks maintained their tight monetary policies to battle inflation, the People’s Bank of China was cutting rates to boost growth, fueling demand for “panda” bonds.

But in the Philippines, not even the need to bridge a projected budget deficit of P1.5 trillion this year sparked the interest of the Marcos administration in availing of cheap Chinese financing.

“I’ve not discussed a panda bond issuance with the Treasury,” Finance Secretary Ralph Recto told Biz Buzz. “No one has mentioned anything about it. I’ve never considered it in the past.”

That apparent aversion to Chinese debt coincided with bleak Manila-Beijing ties under President Marcos, whose administration had repeatedly rebuked China for its aggressions in the contested South China Sea, parts of which are within the West Philippine Sea. During the time of former President Rodrigo Duterte, who forged closer relations with Beijing, the government tapped the Chinese debt market twice.

Recto admitted that things are “medyo sensitive” (a bit sensitive) between Manila and Beijing at this point. But he is confident that the Marcos administration can still diversify its external debt portfolio at low cost with the help of allies like the United States and Japan.

Last May, the government raised $2 billion via sale of global bonds. Recto said the Philippines’ next target is to borrow from the Japanese debt market via a “samurai” bond float later this year.

”They (China) are not part of our trilateral (Philippines, US, Japan) agreement,” he said. —Ian Nicolas P. Cigaral


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