Recto justifies PhilHealth fund transfer: ‘Pondo dapat mapakinabangan nang tama’

A pregnant mother and her baby died on the streets of Cebu City after she refused to be sent to the hospital, fearing that she would not be able to pay the bills.

The woman’s PhilHealth coverage should have addressed her maternity needs. 

In the latest episode of “Kapuso Mo, Jessica Soho,” it was revealed that PhilHealth, which oversees Filipinos' universal health coverage, has surplus funds now slated for transfer to other projects– for infrastructure.

With nearly P90 billion in excess funds, the agency should have made a more tangible impact on Filipinos, who rely on it for hospitalization and healthcare coverage.

As people endure long waits for treatments like dialysis or face surgery delays due to high costs, many are questioning why, despite PhilHealth’s substantial excess funds, their medical bills still exceed the discounts they receive.

In the recent Senate hearing, PhilHealth was directed to remit P89.9 billion in excess subsidies to the National Treasury, as mandated by the General Appropriations Act of 2024.

“To fund the unprogrammed appropriations Congress determined that there is another way at ito ay sa pamamagitan ng pagkolekta sa mga natutulog at hindi nagagamit na pera ng GOCCs,” Finance Secretary Ralph Recto said.

[“To fund the unprogrammed appropriations, Congress determined that this can be done by collecting idle and unused funds from GOCCs."]

The Senate challenged the acquisition of PhilHealth’s funds after it was revealed that the money would be allocated for road construction.

Dr. Tony Leachon of the Philippine Medical Association called the transfer of funds “immoral.”

“Pagnanakaw po ‘yun. Kasi alinsunod ho sa batas, any pondo po ng PhilHealth, kung sumobra po kayo, gagamitin lang ninyo po sa dalawang bagay: ang una po ay palakihin po ang benepisyo ng bawat pasyente. Ninakawan ka na, niloko ka pa,” he said.

[“That’s stealing. According to the law, any excess PhilHealth funds should be used enhance benefits for patients. It’s like being robbed and deceived at the same time.”]

With the annual increase in contributions, Leachon stressed that universal health care access should not be used as a reason to fund bridges or buildings.

“E kailan ka makakagawa ng tulay? Sampung taon. E ngayon ka na mamamatay, e ‘di dapat ngayon mo gamitin ang Philhealth para makasagip ka ng tao araw-araw,” he said.

[“When will a bridge be built? In ten years. But if someone is dying today, PhilHealth funds should be used to save lives."]

In an interview with Jessica Soho, Recto said it was an order from Congress.

“Nasa General Appropriations Act of 2024, nakasaad dun, tignan ninyo ‘yung mga natutulog na pera na nandiyan sa GOCC na hindi napapakinabangan. Kung may sobra, gamitin natin sa pagpopondo ng unprogram fund ng budget. Sa dami ng pangangailangan ng 115 million Filipinos, mula sa kalusugan, sa edukasyon, sa imprastraktura, sa agrikultura, kailangan nagagamit natin nang maayos ang pondo ng taxpayer o pondo ng pamahalaan,” he said.

[“It is stated in the General Appropriations Act of 2024 to review the funds in GOCCs that are not being utilized. If there is a surplus, let’s use it to fund unprogrammed budget needs. With the many demands of the 115 million Filipinos—healthcare, education, infrastructure, agriculture—we need to ensure that taxpayer funds and government resources are used effectively.”]

Highlighting that daily expenditures amount to 15.8 billion pesos while daily revenue is only 11.8 billion pesos, with an additional 4 billion pesos in daily borrowing, Recto underscored the need to consider the Department of Finance's role.

“Hindi ko nais dagdagan ang buwis na sasaluhin ng mamamayang Pilipino. So kung may natutulog na pera diyan at pwedeng pakinabangan, gastusin natin nang tama, bakit hindi?” the Finance Secretary added.

[“I don’t want to increase the taxes that the Filipino people have to bear. So if there are idle funds available, let’s use them properly”]

He clarified that the members’ PhilHealth contributions were not affected by this and that the benefit packages were not reduced, but instead, they had been increased by 30% across the board.

Inadequate coverage for high medical costs

Alvilyne Naparan, a PhilHealth member, faced an overwhelming hospital bill despite her monthly premium payments. 

She contributed 500 pesos from her salary, matched by her employer. However, when her daughter was hospitalized due to a head injury, the bill reached 398,000 pesos. PhilHealth only covered 76,000 pesos.

"Pagkatanggap ko po nung final bill, napaupo na lang ako. Ito lang po ba talaga yung kayang ibigay ng Philhealth? Wala man lang sa kalahati or kahit 1/4 man lang ng bill," Naparan said.

[“When I received the final bill, I was left sitting down. Is this all PhilHealth can provide? Not even half or a quarter of the bill?”]

"Nandito ko, nag-i-struggle sa ospital. Ang laki pa ng bayarin, ba't hindi po nila i-prioritize yung mga pasyente? Bakit siya ilalaan sa infrastructure? Bakit sa Philhealth kukunin?” she said.

[“I’m here struggling in the hospital with such a huge bill. Why aren’t they prioritizing patients? Why allocate the funds to infrastructure? Why take it from PhilHealth?”]

The Private Hospitals Association of the Philippines immediately reacted when PhilHealth’s excess budget was publicized, asking why the corporation must return the funds when it still owes money to private hospitals from discounts given to some patients.

“Ang estimate namin ngayon mga around 4 to 6 billion pesos. ‘Yun pala meron pa silang ganun kalaking pera na tinatago o sinasabi na savings. Tapos parang hirap na hirap silang magbayad sa amin. Bakit ganun?” Dr. Jose De Grano said.

[“They owe us around 4 to 6 billion pesos. Yet, they have that much money not being used. Meanwhile, they seem to struggle to pay us. Why is that?”]

Recto defends allocation

In response to this, Recto said that the first thing that was done was to pay P27 billion to the frontliners during the pandemic.

“Pangalawa, ang budget ng health, on the average, ang increase, mga 25%. Ang isang kulang na kulang natin, ‘yung dagdagan dapat natin ‘yung imprastraktura, dagdag na hospital, dagdag na hospital beds ang kailangan ng public health natin. Kahit may Philhealth ka, kung walang ospital, magagastos mo ba ‘yung Philhealth?” he said.

[“The health budget, on average, has increased by about 25% o We lack additional infrastructure, more hospitals, and more hospital beds for our public health system. Even with PhilHealth, if there are no hospitals, will you be able to use PhilHealth funds?”]

On the shortage of medicines in barangay health centers, Recto clarified that this is covered by the Department of Health’s budget, not PhilHealth’s.

“We respect ‘yung mga opinyon ng mga health advocate. I'm also a health advocate. It just so happens, I'm the secretary of Finance. At may utos ang Kongreso dito na pinag-aralan naman namin, may katwiran naman, sayang naman kung yung pera natutulog lang sa dami ng pangangailangan,” he said.

[“We respect the opinions of health advocates. I’m also a health advocate. It just so happens that I’m the Secretary of Finance. Congress has given this directive, which we have studied and found justified. It would be a waste if the money just sits unused given the many needs of Filipinos.”]
Meanwhile, Dr. Tony Leachon urged a halt to the transfer of funds.

“Nakikiusap ako sa President Marcos, Secretary Recto, tigilan n’yo na ang pagta-transfer ng pondo. Nananalangin kami sa tulong ng bawat Pilipino, gawin n’yo ang dapat para sa bayan,” he said. 

[“I appeal to President Marcos and Secretary Recto, please stop the fund transfers. We are hoping for the support of every Filipino— to do what is right for the country.”]

“This is basic human right ng bawat Pilipino ang kalusugan. Dapat ipaglaban natin ito,” he added. 
[“Healthcare is a basic human right for every Filipino. We must fight for it.”]

The Supreme Court will make the final decision on where PhilHealth's excess funds should go. —JCB, GMA Integrated News