SEN. JV Ejercito said on Tuesday that the Philippine Health Insurance Corp. (PhilHealth) should explain why it failed to properly use its excess funds of nearly P90 billion.
In a statement, Ejercito said the excess funds “is a significant oversight on the part of PhilHealth because many hospitals have been unpaid.”
He called on PhilHealth “to explain why their P89.9-billion funds have not been put to good use.”
Ejercito also called on the national government to “ensure that a portion of unused funds from PhilHealth is used for health sector programs and projects.”
He expressed confidence that Finance Secretary Ralph Recto would ensure proper allocation of the excess fund.
Ejercito, author and sponsor of the Universal Health Care (UHC) Act, said, “We believe that we should expand the health benefit packages and lower the PhilHealth premium rate.”
“The UHC Act remains our best hope to bring quality health care to every Filipino, which is why we are advocating for the swift passage of its amendments in the Senate,” he added.
Excess funds clarified
Health Secretary Teodoro Herbosa in an interview on Tuesday agreed that the excess fund should be spent for various health projects.
He dismissed the demand of health groups to return P89.9 billion in unused funds to PhilHealth as a “mistaken call.”
Herbosa emphasized the need to fund various health projects, saying, “I’d rather get the money and use it for health projects.”
In a text message to The Manila Times, PhilHealth clarified that the funds in question were from the unused portion of the national government subsidy allocated through the General Appropriations Act (GAA) for indirect contributors and no contributions from paying members were involved.
PhilHealth reassured its members that benefits for both direct and indirect contributors would remain intact and were set to expand as part of the PhilHealth Board’s approved benefit plan, which began in 2023. They assured partner hospitals that the payment of valid and properly filed claims would continue without interruption.
On July 19, over 60 health care workers urged President Ferdinand Marcos Jr. to direct the return of the unused funds to PhilHealth to address the specific health care needs of the underprivileged and to implement measures for immediate improvement of health benefits.
Not for Maharlika
Finance Secretary Ralph Recto on Tuesday said that the government woulx not use the money for the Maharlika Investment Funds of government-owned and -controlled corporations (GOCCs).
Recto’s clarification came after health reform advocates questioned the DoF order directing PhilHealth to remit the P89.9 billion of unused government subsidies to the national treasury.
Speaking to reporters at the sidelines of a post-SONA briefing in Pasay City, Recto said that the return of unused and excess funds was approved by the respective boards of the PhilHealth and the Philippine Deposit Insurance Corp.
He also said the issuance of the order is legal, with the DoF having consulted the Governance Commission for GOCCs, the Commission on Audit and the Office of the Government Corporate Counsel beforehand.
“It is also not true that it will be used for the Maharlika Fund. That has nothing to do with it,” Recto said.
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