Article 87Labor and Agrarian Laws and Social Legislation, p. 87

LABOR LAWS AND SOCIAL LEGISLATION SPECIAL LAWS AND IMPLEMENTING RULES AND REGULATIONS

with the health care provider for purposes of wrongfully

claiming NHIP benefits or entitlement shall be punished

with

a

fine

of

not

less

than

Five

thousand

pesos

(P5,000.00)

or

suspension

from

availment

of

NHIP

benefits for not less than three (3) months but not more

than six (6) months, or both, at the discretion of the

Corporation.

(c) Violations of an Employer —

(1)

Failure/Refusal

to

Register/Deduct/Remit

the

Contributions — Any employer who fails or refuses to

register

employees,

regardless

of

their

employment

status, or to deduct contributions from the employee's

compensation or remit the same to the Corporation shall

be punished with a fine of not less than Five thousand

pesos (P5,000.00) multiplied by the total number of

employees of the firm.

Any

employer

or

any

officer

authorized

to

collect

contributions under this Act who, after collecting or

deducting

the

monthly

contributions

from

his

employee's

compensation,

fails

to

remit

the

said

contributions to the Corporation within thirty (30) days

from the date they become due shall be presumed to

have misappropriated such contributions.

(2) Unlawful Deductions — Any employer or officer who

shall deduct directly or indirectly from the compensation

of the covered employees or otherwise recover from

them his own contribution on behalf of such employees

shall be punished with a fine of Five thousand pesos

(P5,000.00) multiplied by the total number of affected

employees.

If the act or omission penalized by this Act be committed

by an association, partnership, corporation or any other

institution,

its

managing

directors

or

partners

or

president

or

general

manager,

or

other

persons

responsible for the commission of the said act shall be

liable for the penalties provided for in this Act.

(3)

Misappropriation

of

Funds

by Employees of the

Corporation — Any employee of the Corporation who

receives or keeps funds or property belonging, payable or

deliverable to the Corporation, and who shall appropriate

the same, or shall take or misappropriate or shall consent,

or through abandonment or negligence shall permit any

other person to take such property or funds wholly or

partially, shall likewise be liable for misappropriation of

funds or property and shall be punished with a fine not

less than Ten thousand pesos (P10,000.00) nor more than

Twenty thousand pesos (P20,000.00). Any shortage of the

funds or loss of the property upon audit shall be deemed

prima facie evidence of the offense.

(d) Other Violations — Other violations of the provisions of

this Act or of the rules and regulations promulgated by

the Corporation shall be punished with a fine of not less

than Five thousand pesos (P5,000.00) but not more than

Twenty thousand pesos (P20,000.00).

All other violations involving funds of the Corporation

shall be governed by the applicable provisions of the

Revised

Penal

Code

or

other

laws,

taking

into

consideration the rules on collection, remittances, and

investment of funds as may be promulgated by the

Corporation.

The Corporation may enumerate circumstances that will

mitigate or aggravate the liability of the offender or erring

health care provider, member or employer.

Despite the cessation of operation by a health care

provider or termination of practice of an independent

health care professional while the complaint is being

heard, the proceeding against them shall continue until

the resolution of the case.

The dispositive part of the decision requiring payment of

fines, reimbursement of paid claim or denial of payment

shall be immediately executory.

(National Health Insurance Act of 2013, Republic Act No.

10606, [June 19, 2013])

ARTICLE XI Appropriations

SECTION 45. Initial Appropriation . — The unexpended

portion of the budget of the Philippine Medical Care

Commission (PMCC) for the year during which this Act

was

approved

shall

be

utilized

for

establishing the

Corporation and initiating its operations, including the

formulation of the rules and regulations necessary for the

implementation of this Act. In addition, initial funding

shall come from any unappropriated but available fund of

the Government.

SECTION 46. Subsequent Appropriations . — Starting 1995

and

thereafter,

twenty-five

percent

(25%)

of

the

increment in total revenue collected under Republic Act

No.

7654

shall

be

appropriated

in

the

General

Appropriations

Act

solely

for

the

National

Health

Insurance Fund.

In

addition, starting 1996 and thereafter, twenty-five

percent

(25%) of the incremental revenue from the

increase in the documentary stamp taxes under Republic

Act No. 7660 shall likewise be appropriated solely for the

said fund.

SECTION

47.

Additional

Appropriations .

—

The

Corporation

may

request

Congress

to

appropriate

supplemental funding to meet targeted milestones of the

Program in accordance with Section 10(d) of this Act.

ARTICLE XII Transitory Provisions

SECTION 48. Appointment of Board Members . — Within

thirty (30) days from the date of effectivity of this Act, the

President of the Philippines shall appoint the members of

the Board and the President of the Corporation.

SECTION 49. Implementing Rules and Regulations . —

Within sixty (60) days from the effectivity of this Act, the

Corporation, in coordination with the DOH, shall issue the

necessary

rules

and

regulations

for

its

effective

implementation. (National Health Insurance Act of 2013,

Republic Act No. 10606, [June 19, 2013])

SECTION 50. Promulgation . — Within one (1) year from its

initial

meeting,

the

Board

shall

promulgate

the

aforementioned rules and regulations in at least two (2)

national newspapers of general circulation. But until such

time that the Corporation shall have promulgated said

rules and regulations, the existing rules and regulations of

the

PMCC

shall

be

followed.

The

present Medicare

Program shall continue to be so administered, until the

Corporation's Board deems the new system as ready for

implementation in accordance with the provisions of this

Act.

SECTION 51. Merger . — Within sixty (60) days from the

promulgation of the implementing rules and regulations,

all functions and assets of the Philippine Medical Care

Commission

shall

be

merged

with

those

of

the

Corporation without need of conveyance, transfer or

assignment. The PMCC shall thereafter cease to exist.

The liabilities of the PMCC shall be treated in accordance

with existing laws and pertinent rules and regulations.

To the greatest extent possible and in accordance with

existing

laws,

all

employees

of

the

PMCC

shall

be

absorbed by the Corporation.

SECTION 52. Transfer of Health Insurance Funds of the

SSS and GSIS . — The Health Insurance Funds being

administered by the SSS and GSIS shall be transferred to

the

Corporation

within

sixty

(60)

days

from

the

promulgation of the implementing rules and regulations.

The SSS and GSIS shall, however, continue to perform

Medicare functions under contract with the Corporation

until such time that such functions are assumed by the

Corporation, in accordance with the following Section.

SECTION 53. Transfer of the Medicare Functions of the

SSS

and

GSIS

.

—

Within

five

(5)

years

from the

promulgation of the implementing rules and regulations,

the

functions,

assets,

equipment,

records,

operating

systems, and liabilities, if any, of the Medicare operations

of

the

SSS

and

GSIS

shall

be

transferred

to

the

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