PhilHealth told to return P139-million allowances, bonuses

MANILA, Philippines — The Commission on Audit (COA) has affirmed the validity of notices of disallowance (NDs) previously issued by its corporate government sector against the Philippine Health Insurance Corp. (PHIC or PhilHealth) for the return of P139.473 million in allowances and bonuses found to have been illegally granted to its officials and employees.

In a decision dated May 23, the COA Proper has denied the motion for reconsideration filed by former PhilHealth president and chief executive officer Alexander Padilla in April 2016, seeking the nullification of two NDs issued by the COA-Corporate Government Sector (CGS) Cluster 6 in May 2013.

The two NDs flagged the payments of subsistence and laundry allowance as well as hazard pay to PhilHealth officials and employees in the Central Office and National Capital Region for 2012 in the amount of P91,156,377.93.

COA agreed with the position of its CGS that the PhilHealth workers are not entitled to subsistence and laundry allowance as well as hazard pay, as such grants are exclusive to public health workers in accordance with Republic Act 7305 or the Magna Carta of Public Health Workers.

COA said under RA 7305 and its implementing rules and regulations, additional benefits such as hazard pay, subsistence allowance and laundry allowance shall be exclusive to the public health workers delivering actual health services in a health establishment or facility.

“Clearly, PHIC personnel who are not directly involved in rendering health or health-related services cannot be considered health workers and be entitled to hazard pay. PHIC is a government corporation established to provide health insurance coverage and not the performance of health service functions,” COA said.

In a separate decision promulgated on May 24, COA also denied a petition for review filed by PhilHealth Regional Office IV-B (Mimaropa) assailing the two NDs issued by the COA-CGS Cluster 6 on Nov. 11, 2014 and Feb. 3, 2015 covering the payments of various allowances and benefits to the regular and non-regular employees of PhilHealth Region IV-B in 2012 totaling P48,317,295.55.