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Case 7:Social security for all in thePhilippinesIn the Philippines, two complementary facilities -the statutory social security system and the healthinsurance scheme — are being made progressivelyaccessible to everyone through voluntary schemesthat are open to self-employed workers, lowerpricedpackages and a wider network of collectionunits, including banks and organised groups.The Philippines Social Security System (SSS) offersa comprehensive range of cash benefits asinsurance for retirement, death, disability, maternity,sickness, old age, death and work-relatedinjuries. In 1995, it extended membership to theinformal sector under its self-employed and voluntarymembership scheme. Under this scheme,the minimum monthly salary to qualify as an SSSmember was lowered to P1,000 and the definitionof self-employed was expanded to ‘all selfemployedpersons regardless of trade, business oroccupation, with a monthly net income of at leastP1,000.’ This definition would include householdhelp, individual farmers, fisher folk and othersmall entrepreneurs who may join the scheme asvoluntary members. 90As of December 2002, SSS covered about 24.3million members, of whom 4.5 million are self-employedor working in the informal economy. However,the scheme continues to have problems withcompliance, and workers often blame non-membershipon lack of time, lack of information, lackof regular employment, cost of contributions, anddifficulties trying to contact SSS representatives.The Philippine Health Insurance Corporation (Phil-Health) used to be integrated with the Social SecuritySystem, but was separated, in part, to lowerthe cost of medical insurance package for householdsthat set their priorities for immediate ratherthan the longer-term medical needs covered bythe SSS. Phil-Health administers health insuranceand provides hospitalisation as well as out-patientbenefits to its members and their beneficiaries intimes of need and illness.Phil-Health has expanded its programme to includethose working in the informal economy through the‘Individually Paying Programme’ (IPP). In 2002,Phil-Health covered 54.6 million Filipinos, or 64percent of the country’s projected population forDecember 2005. Of the total covered, 54 percentare employed; 15 percent are individual payers;sponsor 22 percent by third parties, and 0.6 arenon-paying members. Individual payers includethe self-employed (market vendors, farmers, fisherfolk),private practitioners and professionals(doctors, lawyers), and those separated from work.With 2.9 million members as of March 2006, it iscalculated that IPP membership grows by an averageof 30 percent each year.Under the IPP, household heads pay a monthlycontribution of only P100 (currently just over $2)to have their families covered by health insurance.This entitles members and their dependentsto limited hospital coverage for room and board,laboratory tests, medicines and doctors’ fees whenconfined in a hospital. Phil-Health has furtherpilot-tested a partnership with organised groupssuch as cooperatives to facilitate its reach to thosewho are difficult to reach individually.Lowering the cost of insurance packages, allowingmore frequent collection, and partnering withorganised groups, could serve to make such voluntaryschemes available to all.183