Sec. 2. (a) Medical and Dental Practitioners are urged to support the government's intention to provide a meaningful level of benefits by charging professional fees to Medicare beneficiaries confined in wards/Medicare rooms no more than the professional fee ceiling provided for by Medicare and to help preserve the Health Insurance Fund by avoiding unnecessary utilization of medical services.

(b) Hospitals are likewise urged to provide the same support by maintaining reasonable hospital rates for Medicare patients.

Sec. 3. The amount necessary to cover the increases in Medicare benefits for GSIS Medicare beneficiaries shall be funded through a Health Financial Assistance Program to be taken from budgetary savings of national government agencies, local government units, and government corporations, respectively. For this purpose, the Department of Budget and Management shall set aside from savings in the 1989 budget of the concerned agencies, local government units and government corporations, the amount necessary to fund the 1989 requirement of the said Program. Thereafter, the annual Health Financial Assistance requirements shall be included in the budgets of the concerned agencies, local government units and government corporations. Provided, That the amount of financial assistance shall not exceed the deficit (which is the difference between the total projected GSIS Medicare revenues and the total projected GSIS Medicare disbursements) plus the amount required to gradually build up a reserve level equivalent to estimated benefit claims for one year; Provided, further, That the Department of Budget and Management, the Philippine Medical Care Commission and the Government Service Insurance System shall jointly promulgate the necessary rules and regulations to implement this Section.

Sec. 4. (a) The computation of the monthly contribution of members shall be in accordance with contribution billing procedures of SSS and GSIS as the case may be.

For GSIS members, the contribution shall be computed at 2.5%, to be shared equally by employers and employees, of the basic monthly salary subject to sub-section (b) hereof.

For SSS members, monthly contribution shall be in accordance with the following schedule subject to sub-section (b) hereof:

(b) The maximum contribution base for all members shall continue to be limited to P1,000 per month until December 31, 1990; however, maximum contribution base shall be increased to P2,000 starting January 1, 1991; to P2,500 starting January 1, 1992; and to P3,000 starting January 1, 1993.

(c) The SSS and GSIS shall continue conducting acturial studies for all purpose of determining from time to time the contribution necessary to ensure long term viability of the Health Insurance Fund.

Sec. 5. All orders, issuances, rules and regulations or parts thereof inconsistent with this Executive Order are hereby repealed or modified accordingly.

Sec. 6. This Executive Order shall take effect August 1, 1989.

Done in the City of Manila, this 28th day of July, in the year of Our Lord, nineteen hundred and eighty-nine.