SC justice suggests overhaul of PhilHealth board, return of transferred funds

For Supreme Court Associate Justice Antonio Kho, it may be time to overhaul the board of the Philippine Health Insurance Corporation (PhilHealth) over the utilization of its budget.

“Probably, it’s time to overhaul PhilHealth and change the board for not complying with what the law requires,” Kho said Tuesday during the oral arguments on petitions seeking to block the transfer of PhilHealth’s excess funds to the national treasury.

This came after Health Assistant Secretary Albert Domingo revealed that PhilHealth computes its budget request based on the number of members in its database.

“It does not refer to the computation on the sin tax allocation, instead it counts the number of members based on a database,” he said.

“There is a database of indirect members and then it generates a list… Then that number is submitted, multiplied by a factor which is the premium rate, and then is submitted to the Department of Budget and Management,” he added.

Under Section 37 of the Universal Health Care Act, the funds for PhilHealth shall be sourced from the following:

• Total incremental sin tax collections;
• 50% of the national government share from the income of the Philippine Amusement Gaming Corporation; 
• 40% of the charity fund, net of documentary stamp tax payments, and mandatory contributions of the Philippine Charity Sweepstakes Office;
• Premium contributions of members;
• Annual appropriations of the Department of Health included in the GAA;
• National government subsidy to PhilHealth included in the GAA

This prompted Kho to ask if PhilHealth is not following the law. 

In response, Domingo said that “budget principles require that it is needs-based.”

“If we will follow it based on the projected fund ceiling or availability it might not match certain needs,” he said.

Kho, however, said that PhilHealth is limiting its own funding. 

“If you increase the budget 200%, I don’t think the Filipinos would not avail of that. You define your own limits. Congress allocates budget or collects taxes, provides for collection of taxes to answer for the subsidy of PhilHealth,” Kho said.

“Now, when you request money for subsidy, ang ibig mong sabihin hindi mo na papakialaman ‘yun? Hindi mo na intindihin ‘yun? Gagawa ka ng sarili mong formula because you have limited understanding. There’s a limited need of our people for health,” he added.

(Now, when you request money for subsidy, you mean that you will no longer touch that? You will no longer try to understand that? You will make your own formula because you have a limited understanding. There’s a limited need of our people for health.)

Kho said if there is an issue with the utilization of funds on the part of PhilHealth, the government must order the agency to raise its benefits and hire people in order to fully utilize its funds.

“Apparently, from your own words, kasalanan ‘yan ng administration. This administration, last administration, or the previous administration. At kasalanan ‘yan ng PhilHealth board,” he said.

(Apparently, from your own words, that’s the fault of the administration. This administration, last administration, or the previous administration. And that is the fault of the PhilHealth board.) 

“Huwag natin pahirapan ‘yung tao because nandiyan naman ‘yung pera. The money is there, government actually collected this and you’re not giving it to PhilHealth to serve as health benefits for our people,” he added.

(Let’s not make it difficult for the public because the money is there. The money is there, government actually collected this and you’re not giving it to PhilHealth to serve as health benefits for our people.)

Domingo said the administration agrees with Kho’s observation. He said this case is the signal to increase PhilHealth’s benefits. 

He said a new PhilHealth president and CEO was also appointed. In February, Dr. Edwin M. Mercado, a US-trained orthopedic surgeon, took his oath of office in Malacañang.

“Iba po yung PCEO na humarap sa korteng ito at nung ikawalang oral arguments, ganon ho kabilis, iba na ho ‘yung humarap na PCEO. Kino-correct na po,” Domingo said. (The first PCEO who faced the court is different from the one who faced the court now. We are correcting it.)

Kho said this was a good point from PhilHealth but that they should not "close their eyes for the past years" that the benefit was not given.

Kho also said the administration should return the money to PhilHealth.

Last year, PhilHealth remitted P60 billion to the National Treasury while the SC issued a temporary restraining order halting the transfer of the remaining P29.9 billion.

“As long as the government recognizes now it is now incumbent on the part of the government to return the P60 billion that was transmitted already because it recognized now,” Kho said.

He said PhilHealth may request the government to return the P60 billion.

“Maybe PhilHealth can already request the President to return the money, the P60 billion that were transmitted to the government for uncoded program funds. Ibalik nila sa Philhealth [Return it to PhilHealth] and PhilHealth to expand its benefits, hire more people to answer for the needs of the health of our people,” Kho said.

The oral arguments will resume on April 29, Tuesday. — With Sherylin Untalan/BM, GMA Integrated News