Management Consulting

In the Philippines, businesses faced significant challenges due to the COVID-19 pandemic, particularly with the implementation of tiered quarantine measures that affected essential healthcare services and overall economic activity. As companies struggled to maintain operations, many resorted to cutting human resources costs, which included temporary work suspensions and redundancies. This situation was exacerbated by rising healthcare premiums, as the government’s health plan, PhilHealth, did not cover typical inpatient hospital costs for serious COVID-19 patients. However, the pandemic also led to a notable decrease in the utilization of health insurance benefits, with medical claims dropping to 30 to 50 percent of normal levels during the lockdown from March to July 2020. Aon Philippines identified this unusual dynamic in employer health plans, where the expected loss ratio for the current and potentially the next plan year was significantly below normal levels. This presented an opportunity for businesses to potentially see a decrease in renewal rates for premiums in the upcoming policy years. To navigate these challenges, Aon recommended several tailored solutions for organizations. These included redefining roles and policies to create a hybrid workforce with reduced working hours, which would allow businesses to adjust compensation packages and medical benefits while retaining top talent. Additionally, Aon emphasized the importance of addressing mental health, particularly given that the Philippines has the highest depression rate in Southeast Asia. The implementation of the Mental Health Law provided a framework for businesses to offer mental health support, including crafting policies integrated into employee benefits programs and conducting awareness training for leadership. As companies prepared for employees to return to work, Aon advised on refining return-to-work policies, which included evidence-based testing and daily symptom checkers to ensure business continuity. The overarching goal was to maintain a healthy and engaged workforce, which is crucial for long-term success in a post-COVID-19 landscape. By focusing on retaining key employees, extending mental health support, and implementing well-planned return-to-work strategies, organizations could position themselves for recovery and avoid reactive measures that could undermine their stability.