Section 16Sec./Art. 16

Section 26 of the same Act is hereby amended to read as follows:

"SEC. 26. Financial Management. The use, disposition, investment, disbursement, administration and management of the National Health Insurance Fund, including any subsidy, grant or donation received for program operations shall be governed by applicable laws and in the absence thereof, existing resolutions of the Board of Directors of the Corporation, subject to the following limitations:

"(a) All funds under the management and control of the Corporation shall be subject to all rules and regulations applicable to public funds.

"(b) The Corporation is authorized to charge to the various funds under its control the costs of administering the Program. Such costs may include administration, monitoring, marketing and promotion, research and development, audit and evaluation, information services, and other necessary activities for the effective management of the Program. The total annual costs for these shall not exceed the sum total of the following:

"(1) Four percent (4%) of the total premium contributions collected during the immediately preceding year;

"(2) Four percent (4%) of the total reimbursements or total cost of health services paid by the Corporation in the immediately preceding year; and

"(3) Five percent (5%) of the investment earnings generated during the immediately preceding year.

"The period for implementation of the cost ceiling provided under this section shall not be later than five (5) years from the effectivity of this Act during which period, the total annual cost shall not exceed the sum total of the following:

"(i) Five percent (5%) of the total contributions;

"(ii) Five percent (5%) of the total reimbursements; and

"(iii) Five percent (5%) of the investment earnings generated during the immediately preceding year."