Section 2Sec./Art. 2

Declaration of Principles and Policies. - Section 11, Article XIII of the 1987 Constitution of the Republic of the Philippines declares that the State shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost. Priority for the needs of the underprivileged, sick, elderly, disabled, women, and children shall be recognized. Likewise, it shall be the policy of the State to provide free medical care to paupers.

In the pursuit of a National Health Insurance Program, this Act shall adopt the following guiding principles:

a. Allocation of National Resources for Health - the Program shall underscore the importance for government to give priority to health as a strategy for bringing about faster economic development and improving quality of life.

b. Universality - the Program shall provide all citizens with the mechanism to gain financial access to health services, in combination with other government health programs. the National Health Insurance Program shall give the highest priority to achieving coverage of the entire population with at least a basic minimum package of health insurance benefits;

c. Equity - the Program shall provide for uniform basic benefits. Access to care must be a function of a person's health needs rather than his ability to pay;

d. Responsiveness - the Program shall adequately meet the needs for personal health services at various stages of a member's life;

e. Social Solidarity - the Program shall be guided by community spirit. It must enhance risk sharing among income groups, age groups, and persons of differing health status, and residing in different geographic areas;

f. Effectiveness - the Program shall balance economical use of resources with quality of care;

g. Innovation - the Program shall adapt to changes in medical technology, health service organizations, health care provider payment systems, scopes of professional practice, and other trends in the health sector. It must be cognizant of the appropriate roles and respective strengths of the public and private sectors in health care, including people's organizations and community-based health care organizations;

h. Devolution - the Program shall be implemented in consultation with local government units (LGUs), subject to the overall policy directions set by the National Government;

i. Fiduciary Responsibility - the Program shall provide effective stewardship, funds management, and maintenance of reserves;

j. Informed Choice - the Program shall encourage members to choose from among accredited health care providers. the Corporation's local offices shall objectively apprise its members of the full range of providers involved in the Program and of the services and privileges to which they are entitled as members. This explanation, which the members may use as a guide in selecting the appropriate and most suitable provider, shall be given in clear and simple Filipino and in the local languages that is comprehensible to the member;

k . Maximum Community Participation - the Program shall build on existing community initiatives for its organization and human resource requirements;

l. Compulsory Coverage - All citizens of the Philippines shall be required to enroll in the National Health Insurance Program in order to avoid adverse selection and social inequity;

m. Cost Sharing - the Program shall continuously evaluate its cost sharing schedule to ensure that costs borne by the members are fair and equitable and that the charges by health care providers are reasonable;

n. Professional Responsibility of Health Care Providers - the Program shall assure that all participating health care providers are responsible and accountable in all their dealings with the Corporation and its members;

o.Public Health Services - the Government shall be responsible for providing public health services for all groups such as women, children, indigenous people, displaced communities and communities in environmentally endangered areas, while the Program shall focus on the provision of personal health services. Preventive and promotive public health services are essential for reducing the need and spending for personal health services;

p.Quality of Services - the Program shall promote the improvement in the quality of health services provided through the institutionalization of programs of quality assurance at all levels of the health service delivery system. the satisfaction of the community, as well as individual beneficiaries, shall be a determinant of the quality of service delivery,;

q. Cost Containment - the Program shall incorporate features of cost containment in its design and operations and provide a viable means of helping the people pay for health care services; and

r. Care for the Indigent - the Government shall be responsible for providing a basic package of needed personal health services to indigents through premium subsidy, or through direct service provision until such time that the program is fully implemented.