Following reports of funds from the Philippine Health Insurance Corp. (PhilHealth) being channeled to the Maharlika Investment Corporation (MIC), medical groups are now urging the government to return the P89.9 billion in PhilHealth’s unused funds.
In a statement issued by more than 35 medical groups Thursday, July 18, they asked President Ferdinand “Bongbong” Marcos, Jr. to issue a directive to “return the entirety of the P89.9 billion in unused funds to PhilHealth for individual health care needs of the poor.”
The Philippine Medical Association (PMA) added that Marcos should implement measures to promptly enhance health benefits and consider forming an independent agency to oversee this if necessary.
In April, the Department of Finance (DOF) mandated that Government-Owned and Controlled Corporations (GOCCs) remit their excess funds to the national treasury.
Consequently, DOF instructed PhilHealth to transfer P89.9 billion in excess funds to the General Appropriations Act’s “unprogrammed appropriations.”
Doctors from the Asia Pacific Center for Evidence-Based Healthcare and the Philippine College of Physicians (PCP) voiced concerns about the impact of this fund transfer, particularly on health services for underprivileged PhilHealth members.
They argued that this transfer violates Section 11 of Republic Act 11223, the Universal Health Care Act, which stipulates that excess funds should be used to enhance program benefits and reduce member contributions, not be redirected to the national government’s general fund.
The groups emphasize that PhilHealth has not adequately expanded its benefit packages, leaving a significant gap in healthcare services in the Philippines.
Former PCP President Maricar Limpin expressed opposition to the fund transfer, asserting it is crucial for covering the hospital expenses of sick members.
The Department of Health (DOH) has expressed support for these concerns.
Health Assistant Secretary Albert Domingo stated, “The DOH agrees with the stance that health funds should be used for health purposes and should not be invested or kept in the bank.”
He noted that the DOF had used the unused subsidy to fund the Covid-19 Health Emergency Allowance for healthcare workers, a decision reportedly made at the request of PhilHealth President Emmanuel Ledesma Jr., with the DOH secretary serving as a non-voting board chair.
The decision is anticipated to face challenges from concerned groups and individuals.
Meanwhile, the DOH’s regional offices have begun distributing the remaining P27 billion in health emergency allowances to public and private health facilities.
This follows a notice of cash availability from the Department of Budget and Management (DBM).
Domingo confirmed that the funds are being allocated to local government units and private health facilities under the DOH’s jurisdiction.
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