Healthcare advocates appeal cancellation of PhilHealth fund transfers to natl treasury

Healthcare worker groups and former Health secretaries on Monday appealed to Finance Secretary Ralph Recto to cancel the transfer of the second tranche of excess funds of the Philippine Health Insurance Corporation (PhilHealth) to the national treasury, amounting to P10 billion.

Following the initial remittance of P20 billion last May, the medical professionals said that the next tranche of fund transfer is scheduled on August 21, Wednesday. A total of P89.9 billion excess funds of PhilHealth is set to be transmitted to the national treasury on a staggered basis. 

“We urge the Department of Finance (DOF) to be sensitive to public opinion and exercise prudence and caution by not transferring the next tranche of funds and succeeding transfers, in light of the Supreme Court’s request for the comments of DOF and other agencies on the petition filed by health advocates questioning the transfer of PhP89.9B PhilHealth funds last August 2, 2024,” the letter of the healthcare workers read.

The groups emphasized that PhilHealth funds need to be protected, “given the ever-increasing costs of healthcare” in the country.

They also said that the government should not take back the funds given to PhilHealth, as it violates the basic principles of an insurance system.

“Forty-four percent of health expenditures are shouldered out-of-pocket by Filipino households. We are daily witnesses to patients who are unable to get the care they desperately need due to the inefficiencies within our social health insurance system,” they said.

“We strongly believe that the solution to PhilHealth’s inability to use its funds is not to strip Filipinos of healthcare funding but to implement immediate and substantial PhilHealth reforms such as increasing the scope and coverage of benefit packages,” they added.

At least 65 organizations participated in the “white coat rally” at the Philippine General Hospital (PGH) earlier on Monday, including representatives from the Philippine College of Physicians (PCP) and Philippine Nurses Association (PNA).

Meanwhile, former Health Secretaries Francisco Duque III, Paulyn Jean Rosell-Ubial, Enrique Ona Jr., Esperanza Cabral, Manuel Dayrit, and Jaime Galvez Tan were signatories in the letter addressed to Recto.

In a message to GMA News Online, Recto said that he will abide by the Supreme Court’s (SC) decision on the matter.

“Since the issue is with the Supreme Court, let’s respect our legal process. Will definitely abide by Supreme Court's decision,” he said.

The SC last week ordered several senior government officials to submit their comments to a petition blocking the transfer of excess funds of PhilHealth.

The petition was filed by the Philippine Medical Association, Senator Aquilino "Koko" Pimentel III, former Finance undersecretary Cielo Magno, Dr. Ma. Dominga Padilla, and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa, among others.

Meanwhile, the respondents are Finance Secretary Ralph Recto, the House of Representatives represented by Speaker Ferdinand Martin Romualdez; the Senate of the Republic of the Philippines represented by Senate President Francis “Chiz” Escudero; Executive Secretary Lucas Bersamin; and PhilHealth, represented by its president, Emmanuel Ledesma Jr.

No harm to PhilHealth members

In a separate statement, Recto assured the public that the use of PhilHealth’s funds for the government’s priority programs and projects “will do no harm to its members nor on its plans to expand its benefit packages this year.”

“The Department of Finance’s move is consistent with the medical principle of ‘do no harm’. Inuulit ko, hindi maapektuhan ang pang-araw-araw na operasyon ng PhilHealth dahil dito at hindi po gagalawin ang kontribusyon ng mga miyembro ng PhilHealth,” he said.

(I repeat, the daily operations of PhilHealth and the contributions of PhilHealth members will not be affected.)

“Ni isang kusing, walang kaltas sa mga benepisyong matatanggap ng mga miyembro. Ayon pa nga sa Presidente, mas tataas pa nga ang mga benepisyo ng mga miyembro sa taong ito,” Secretary Recto added.

(Not one centavo, there will be no deduction in the benefits that the members will receive. Even the President said the benefits of members will increase this year.)

According to Recto, even if the P 89.9 billion unused government subsidies will be transferred to the national treasury, PhilHealth is still equipped with more than half a trillion pesos or around P550 billion in its coffers, “which is more than enough to increase the benefits of its direct and indirect contributors, covering two to three years of expenses.”

By the end of 2024, Recto said PhilHealth will have a net income of P61.18 billion. The state health insurer is also set to receive another P70 billion-worth of government subsidies next year.

Last July, Health Secretary Ted Herbosa assured that the P89.9 billion in excess funds of PhilHealth will be rechanneled to fund programs for the medical community. —RF, GMA Integrated News