Return P60 billion to PhilHealth – SC justice

MANILA, Philippines — The P60 billion transmitted by the state health insurer to the national treasury should be returned by the government, according to Supreme Court (SC) Associate Justice Antonio Kho Jr.

At yesterday’s oral arguments on the Philippine Health Insurance Corp.’s controversial P89.9-billion fund transfer for unprogrammed appropriations, Kho asked how PhilHealth computed its request for government subsidy.

Health Assistant Secretary Albert Francis Domingo said its request is not based on the sin tax allocation, but on the number of members and premium rate.

Kho expressed surprise, saying PhilHealth is not “observing what the law requires” as it is not considering taxes being collected for the subsidy for indirect contributors.

Domingo said the government recognizes this observation, noting that the case “has been the signal it has been using to increase benefits.”

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

PhilHealth remitted to the national treasury the first tranche of P20 billion in May last year and another P10 billion in August.

The insurer remitted the third tranche amounting to P30 billion in October.

The remaining P29.9 billion was slated to be transferred in November, but the SC issued a temporary restraining order prohibiting the further transfer of PhilHealth funds.

Funds from tax collections of the government should be remitted in full to PhilHealth since it is “just a matter of administrative absorption,” Kho noted.

“If PhilHealth can’t spend it all, direct them to increase benefits and hire workers,” he said, noting that benefits have not been given to the Filipino people in the past years.

Domingo lamented that this has been the directive to PhilHealth since 2013 and three administrations have passed.

“Probably it’s time to overhaul PhilHealth and change the board for not complying with what the law requires,” he said.

PhilHealth’s unused funds are “not for the government to take away,” but for the state insurer to use “to expand its programs and benefits,” Kho said.

Continuation of the oral arguments is set for April 29.

Meanwhile, PhilHealth has reported that members’ registration has reached over 102 million as of December last year.

Under the direct contributors category, about 65 million beneficiaries, including members and their dependents, have registered with PhilHealth. For indirect contributors, there are about 36 million registered beneficiaries. — Rhodina Villanueva