[ Manila Bulletin Online ] September 8, 2008
By BERNIE CAHILES-MAGKILAT
LOS ANGELES, CA – The Philippines is strongly lobbying with the US government to allow the use of government medical insurance for the medical expenses of Americans retiring in the Philippines as part of the government’s effort to boost the country’s bid to become a global retirement haven.
This was bared by Philippine Retirement Authority (PRA) president Edgar B. Aglipay during a presentation at the American International Real Estate Expo & Conference (AIREEC).
"We are in the initial stages of talking with the Congress leaders particularly the Lower House committee on Social Services," Aglipay told Business Bulletin.
According to Aglipay, they would be making a pitch for the US government to apply this privilege initially to Filipino-American war veterans.
"Who knows after the Filipino-American war veterans, the American citizens would follow suit," Aglipay said.
But the issue of the portability of the retirees’ government medical insurance is one major factor that is preventing Americans from undertaking medical procedures in the Philippines.
"An appendectomy procedure in the Philippines costs only one-fourth the cost in the U.S.," Aglipay said.
The Philippine government has been promoting the country as a retirement haven under the PRA has undertaken a Special Resident Retiree Visa (SRRV) program that enables foreign retirees to make the Philippines their second global home.
So far, Aglipay said, there are 250,000 Filipinos enrolled in the SRRV program. Aglipay then urged retirees to enroll in the program now because the local market has only the capacity to host one million retirees in relation to the available number of condominium units for sale.
Under the SRRV program, a 35 to 49 year year-old foreign national can retire in the Philippines with investments of $ 50,000 while those 60 and above can invest $ 20,000.
Aglipay quoted a study showing that by 2050 the under 15 age group will drop about one fifth of the population. In contrast, the percentage of persons aged 65 will grow from 6 to 8 percent. But, with a three percent growth of the Philippine population, the young population is ready to take care of the older generation.
With the economic downturn in the U.S, and the real estate crash, Aglipay said retirees are looking for better place to spend their retirement.
Retirees are also faced with insufficient pension fund to support their retirement years.
"That is why we are presenting the Philippines as their second home," Aglipay said.
