DOF defends utilization of unused PhilHealth, GOCC funds

The Department of Finance (DOF) on Monday defended the utilization of unused and idle funds of government corporations such as the Philippine Health Insurance Corp. (PhilHealth), saying this was “more prudent” than borrowing or imposing taxes.

In a statement, the DOF said unlocking excess fund balances does not impact the viability of participating corporations and their delivery of services, and that this complies with the General Appropriations Act of 2024.

“In the case of PhilHealth, unused government subsidies are not part of its reserve funds, nor income that is being restricted by the Universal Health Care Act to be used by the national government as a general fund,” the DOF said.

“Moreover, the return of unused and excess funds was approved by the PhilHealth and PDIC’s (Philippine Deposit Insurance Corp.) respective boards,” it added.

The statement was released after several advocates questioned the diversion of pesos in excess funds of government-owned and -controlled corporations (GOCCs) — specifically the PhilHealth — to fund appropriations this year.

Independent health advocate Dr. Tony Leachon, in a post on his X account, said some P89.9 billion in excess PhilHealth funds were diverted to unprogrammed funds or pet projects, but could be used to address high premium payments and the improvement of low hospitalization benefits among others.

 

Philhealth excess funds 89.9 billion diverted to unprogrammed funds or pet projects :

KAWAWA PILIPINONG PASYENTE - simple communication to all Filipinos

What can we do on the almost 90 B excess or savings ?

1. High premium payments
2. Low benefits when hospitalized be… pic.twitter.com/Qgbja5Fw7l

— Tony Leachon MD (@DrTonyLeachon) July 13, 2024

Former Senator Panfilo “Ping” Lacson also said diverting the P89.8 billion funds violates the Universal Health Care Act, and could create “serious security problems” for the country.

“Soldiers and policemen, just like any government employee are PhilHealth members whose contributions are automatically deducted from their monthly salaries. That being said, our policymakers should rethink their position,” he said in a post on his X account.

 

 

Diverting Philhealth’s “unutilized” P89.9B government subsidy to the Unprogrammed Fund in violation of the Universal Healthcare Act (and maybe the GAA itself) may create some serious security problems than we can imagine. Why? Soldiers and policemen, just like any government…

— PING LACSON (@iampinglacson) July 15, 2024

The DOF said that remittances by PhilHealth and other GOCCs to the treasury are what enabled the Department of Budget and Management (DBM) to release P27.5 billion to pay 5.04 million claims of COVID pandemic era service allowances of frontliners.

It also noted that the result of the diversion promotes the “common good” based on the list of recipients identified in the national budget.

“We cannot afford to have excess money sleeping in our GOCCs while withholding the same funds from public investment. Hibernating funds can help the nation without harming government corporations. This way the government does not have to inflict additional taxes, increase our debt, and put pressure on our deficit,” the DOF said.

“The DOF remains steadfast in its stewardship of sound fiscal policy which includes efficient mobilization of government resources to promote general public welfare,” it added.—LDF, GMA Integrated News