CoA flags OTS over delayed remittance

The Commission on Audit called out the Office for Transportation Security over its delayed remittance of premium contributions of its employees to the Philippine Health Insurance Corporation.

In its 2022 report, state auditors flagged the OTS over its non-compliance with Republic Act 10606 amending RA 7875, also known as the National Health Insurance of 1995, for incurring four to 220 days of delays in the remittance of premium contributions of officers and employees including job order personnel of OTS to the state health insurer.

Employers are mandated to contribute half of the employees' premium contribution pursuant to Paragraph (a) Section 18 of the Implementing Rules and Regulations.

In 2018, PhilHealth and OTS forged a memorandum of agreement and letter of commitment for the enrollment to PhilHealth Group Insurance of the JO personnel of OTS, who are considered informal income earned.

Audit findings also revealed that delays in remittance transpired even with the existence of the consensus, mandating that the late remittances or non-remittance of premium contributions by the OTS "shall be a valid ground for the suspension of program benefits due to enrollee members and without prejudice to other sanctions as provided under existing laws, rules and regulations."

Based on Item 3d of PhilHealth Circular 2017-0005, the deadline for the remittance of group premium contributions of members under the informal economy is on monthly mode — last day of the applicable month; quarterly mode — last day of applicable quarter; semi-annually mode — last day of the 1st quarter of the applicable semester and annually mode — last day of the first quarter of the applicable year.

Upon inquiry, CoA disclosed that PhilHealth and OTS made a verbal agreement that JOs' contributions remittance shall be made on a quarterly basis.

"Review and evaluation of the remittances showed that share on premium contributions for both regular employees and JO personnel attributed to CY 2021 with an aggregate amount of P255,722.76 was remitted 31 to 111 days delayed while those pertaining to CY 2022 with an aggregate amount of P825,322.79 was remitted four to 220 days delayed disregarding the prescribed timeline in PhilHealth Circular 0001 series of 2014 and PhilHealth Circular 2017-0005," the CoA said.

According to the auditing body, the delays in the remittance of premium contributions may affect the program's benefits in case of hospitalization of members. Likewise, it could be suspended in accordance with the MoA and letter of commitment.

"It bears also to note that a part of the year-end balance of P1,558,321.24 was prior years' unaccounted amount of P1,544,535.82, as discussed under the Accounting Deficiencies portion of Part II of this report, of which, the amount of P13,785.42 remained unremitted as of 31 December 2022," said state auditors.

The OTS, meanwhile, told auditors that it will strictly comply with the provisions of RAs 7875 and 10606, relative to the withholding and timely remittance of member's contributions from employees' salary, wages or earnings.