PhilHealth office. INQUIRER FILE PHOTO
The Philippine Health Insurance Corporation (PhilHealth) needs to manage its finances by using its funds to improve public health benefits and paying off debts to individuals and hospitals instead of focusing on increasing its reserves, a report said on Tuesday.
“It is pure bad fiscal management, that PhilHealth’s policy to continue expanding its treasury operations even as its payables to individuals and hospitals are mounting,” think tank GlobalSource Partners said.
Article continues after this advertisementREAD: BIZ BUZZ: PhilHealth fund transfer ‘legal’ and ‘efficient,’ says Recto
FEATURED STORIES BUSINESS National ID gives more Filipinos ‘face value BUSINESS BIZ BUZZ: Unwinding Gogoro … quietly BUSINESS Polvoron maker seeks P500 million capital for expansionGlobalSource Partners said the government must focus on making PhilHealth improve member benefits as it seems unreasonable for PhilHealth’s leaders to prioritize profitability and reserve funds when these reserves should be used to enhance benefits or lower member contributions, as mandated by the law.
“Their treasury operations, instead of being used to multiply resources to mitigate the health conditions of Filipinos, are meant to generate more funds that would ultimately be unused,” the report said.
Article continues after this advertisementPhilHealth has yet to reply for comment as of this writing.
Article continues after this advertisementLooking back, the Department of Finance issued a circular directing PhilHealth to transfer P89.9 billion in unused government subsidies to the national treasury. Of this amount, P20 billion was sent in May to cover emergency allowances for healthcare workers, and an additional P10 billion was transferred on August 21. Another P30 billion is set to be transferred in October, with the remaining P29.9 billion scheduled for November.
Article continues after this advertisementNo less than Finance secretary Ralph Recto said that PhilHealth’s members’ equity will hit P546.52 billion by the end of the year, noting that its income continues to surpass its expenses.
But for GlobalSource, even the said amount in Philhealth’s reserve funds are not enough to fully meet the needs of universal health care, as decent health care in the country remains inaccessible for many Filipinos.
Article continues after this advertisementMeanwhile, the Office of the Solicitor General has asked the Supreme Court to dismiss the petition seeking to stop the remittance of PhilHealth’s “idle funds” citing that the transfer of unused funds was legal.
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