PhilHealth funds must only be borrowed — economists

Various economists maintained that the Department of Finance (DoF) must consider transferring the P89.9 billion fund of the Philippine Health Insurance Corp. (PhilHealth) to the national government as lent funds that should be returned.

“Finance Secretary Ralph Recto should treat it as a borrowing from PhilHealth. While PhilHealth is a government-owned and controlled corporation, it is an insurance company mandated to cover health benefits,” University of the Philippines economics professor Ramon Clarete said in a text message to the DAILY TRIBUNE.

The DoF ordered PhilHealth to transfer P89.9 billion in total unused funds gradually to the National Government so it can be used to support other health and infrastructure projects under the Unprogrammed Allocations of the General Appropriations Act of 2024.

However, Action for Economic Reforms co-founder Filomeno Sta. Ana III, for his part, said the funds should be used to provide PhilHealth members with medical benefits and help lighten their financial burdens.

“It is clear in the Universal Health Care Act that any excess funds of PhilHealth must be used to expand the benefits of PhilHealth members and reduce their contributions,” he said in a separate text message.

Sta. Ana III added that all infrastructure projects for the year should be already included in the programmed allocations if they are indeed critical projects.

In January this year, PhilHealth started implementing its higher premium contribution requirement from 4 percent to 5 percent as it expanded health benefits coverage to a minimum of 30 percent.

However, Philippine Coalition of Consumer Welfare Inc. (PCCWI) founder Ricardo Samaniego said PhilHealth must mobilize funds promptly to fulfill persisting problems of Filipinos with medical insurance and other needs.

“The funds should instead be used to expand PhilHealth benefits to make members’ medical costs more affordable. Generally, members save only P16,000 per year,” Samaniego said in a Viber message.

“PhilHealth’s free consultation and medicines also are available only at selected areas and medical facilities. Many people do not even know where these services are offered,” he continued.

In a previous interview, PhilHealth chief executive officer Emmanuel Ledesma Jr. said the state insurer studies proposals from legislators and the public to expand benefits coverage up to 50 percent.

For instance, PhilHealth has increased benefits for breast cancer by 1,300 percent from an aid of P100,000 to P1.4 million. With this, PhilHealth said it expects more hospitals to offer the breast cancer package as doctors can provide patients with more cancer procedures that fully address the disease.

Samaniego shared that Secretary Recto consulted his PCCWI regarding the health issues of the majority of Filipinos. The consumer group leader added that PCCWI is always ready to help government officials and the private sector discuss and create solutions to the health and other problems of consumers.

“Despite our efforts, they still proceeded with the transfer of PhilHealth funds. We can refer consultants in the government and the private sector to help address consumer issues,” he said.

Recto argued PhilHealth still keeps P500-billion reserve funds which can already cover expanded benefits over two to three years.

He added PhilHealth is projected to gain P61.18 billion in net income and is targeted to receive P70 billion in government subsidy next year.