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MANILA, Philippines — A portion of the surplus funds of the state-owned Philippine Well being Insurance coverage Corp. (PhilHealth) transferred to the nationwide treasury was used to finance the lately launched well being emergency allowance (HEA) for health-care staff, the Division of Well being (DOH) mentioned on Wednesday.
DOH Assistant Secretary Albert Domingo instructed reporters that about P20 billion of the P89.9 billion of PhilHealth’s unused authorities subsidy was used to settle the unpaid HEA.
“We agree with our civil society organizations and people who say that well being funds ought to be used for well being functions. As we perceive it, and as said by the [DOH], the funds taken from PhilHealth have been used to fund the HEA for our health-care staff. So, in a way, the cash simply moved from the financial institution to the individuals,” he defined.
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On July 5, Finances Secretary Amenah Pangandaman authorized a particular allotment launch order amounting to P27.453 billion to settle the remaining unpaid HEA, upon the directive of President Marcos.
This was the identical quantity the DOH was requesting underneath its proposed 2025 finances for HEA claims to lastly cowl some 5 million remaining validated unpaid HEA claims and 4,283 COVID-19 illness and demise compensation claims of eligible health-care and nonhealth-care staff who served on the top of the pandemic.
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“It is a promise fulfilled,” mentioned Pangandaman, including that whereas the DOH had requested the cash in its 2025 finances, her division exerted further effort to seek out funds for the unpaid claims of health-care staff.
Congress probe
Lawmakers are divided on the controversial switch of the P90 billion in unused funds of the state insurer to the nationwide treasury for “unprogrammed appropriations.”
Whereas Home Assistant Minority Chief Arlene Brosas sought a congressional inquiry on the “irregular” switch of PhilHealth’s unused funds, Ako Bicol get together record Rep. Elizaldy Co, chair of the appropriations panel, backed the Division of Finance’s (DOF) transfer.
Within the Senate, some lawmakers have expressed issues on the “switch and utilization of the reserve funds” of PhilHealth and Sen. Pia Cayetano, chair of the finance subcommittee on the DOH and the schooling sector, vowed to look into the matter.
In query is Round No. 003-2024 issued by the DOF in February this 12 months directing PhilHealth to remit the unused subsidies to the nationwide treasury.
This, the DOF mentioned, was in compliance with the supply within the 2024 Basic Appropriations Act, which was authorized by Congress, permitting extra funds of government-owned and -controlled firms (GOCCs) to be returned to the nationwide coffers.
On Monday, unbiased well being reform advocate Dr. Tony Leachon, former Finance Undersecretary Cielo Magno and Filomeno Sta. Ana III, government director and cofounder of native assume tank Motion for Financial Reforms, warned that the brand new DOF round is likely to be a brand new approach for the federal government to misappropriate funds.
They argued that it violated Republic Act No. 11223, or the Common Well being Care (UHC) Act of 2019, Part 11 of which says that every time precise reserves exceed the required ceiling on the finish of the fiscal 12 months, the surplus can be utilized solely to extend this system’s advantages and reduce the members’ contribution quantities. It additionally notes that no portion of the reserve fund or revenue can go to the final fund of the nationwide authorities or any of its companies or GOCCs.
State subsidies, not reserves
Nevertheless, Finance Secretary Ralph Recto rapidly responded to say that the remittances being referred to by the round are usually not from their member contributions, however from the billions in unused subsidies from the nationwide authorities.
Within the case of PhilHealth, he mentioned the unutilized authorities subsidies weren’t a part of its reserve funds, nor revenue that’s being restricted by the UHC regulation.
“Total, the transfer complies with all legal guidelines, particularly the Basic Appropriations Act of 2024,” Recto famous.
Co, for his half, additionally burdened that the funds being transferred to the treasury have been extra funds of GOCCs and have been “not derived from member contributions. It’s important to know that these funds are distinct and separate from any contributions made by PhilHealth members.”
“This initiative will rechannel billions of dormant funds to assist thousands and thousands of Filipinos take pleasure in higher well being care and social providers, and bolster financial exercise by investing extra in social providers and infrastructure tasks at no further value to the federal government,” he mentioned.
The lawmaker likewise famous that placing “dormant” funds to higher use would scale back the strain on the federal government to borrow extra and for Congress to go new tax measures.
Want for transparency
Brosas, the Gabriela ladies’s get together record consultant, warned PhilHealth to count on to be completely scrutinized within the hearings for the 2025 normal appropriations invoice.
Home Deputy Minority Chief and ACT Academics get together record Rep. France Castro additionally demanded “that the Marcos administration instantly return these funds to PhilHealth, the place they rightfully belong and ought to be used for the advantage of its members.”
Within the Higher Chamber, Cayetano mentioned she would examine the matter fastidiously and would think about the DOF’s declare that the funds have been authorities subsidy and never precise revenues of PhilHealth nor revenues from the contribution of its members.
“We simply should be clear and accountable to the general public. If it’s the members’ contribution, we comply with the regulation that that is just for the usage of PhilHealth to fund further applications and providers,” she mentioned.
“If it’s a authorities subsidy, then I feel that’s an attention-grabbing query,” she added.
Cayetano famous that there have been unprogrammed funds yearly underneath the nationwide finances.
“So, can they get the funds allotted for PhilHealth? As a result of it was not used, PhilHealth being a GOCC (government-owned and -controlled company), is it lined? However the funds have already been mingled with that of the contributions of the members,” she mentioned.
“I don’t have the reply however just like the well being advocates, I’m very involved. I don’t need the funds for well being care be lowered,” she burdened.
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Sen. Joseph Victor Ejercito, creator and sponsor of the UHC Act within the Senate, added that “the well being fund ought to be used for well being. Let’s prioritize bettering the standard of advantages and decreasing the contribution paid by our residents.” INQ
