Lawmaker backs redirection of PhilHealth funds

MANILA, Philippines — Economist and Albay Rep. Joey Salceda expressed support for the position of the Department of Finance (DOF) that the P89.9-billion excess funds of the Philippine Health Insurance Corp. (PhilHealth) should be redirected and used to stimulate economic development.

Salceda said PhilHealth has “not been effectively using these excess funds to improve member benefits.”

“They’ve been stagnant for too long. Utilizing these funds for public investment is a more productive approach. It helps the government save on interest payments, which is beneficial for the economy,” he noted.

Salceda made the statement in support of the DOF’s argument that it is preferable to use these excess funds for unprogrammed appropriations rather than introducing new taxes or incurring additional debt.

“Low government spending reduces growth. Reduced growth creates poverty. Poverty creates hunger. Hunger creates disease,” he added.

The lawmaker added that these excess funds are derived from taxpayer money, not from contributions by PhilHealth members.

Based on the General Appropriations Act, President Marcos allocated P162 billion in taxpayer-funded subsidies to PhilHealth, on top of the premiums collected from its members.

“If there is still excess money, it suggests that we have allocated too much in subsidies. It’s more prudent to use this surplus taxpayer money for other urgent needs rather than accumulating new debt with interest,” he added.

DOF projected that using these unutilized subsidies could redound to a 0.8 percent increase in economic growth, potentially reaching a total growth rate of 6.5 percent for the year.

This reallocation is also expected to generate around 600,000 additional employment opportunities.

Salceda has urged PhilHealth to consider allocating some of the excess subsidies in the future to enhance benefits, especially for catastrophic illnesses affecting senior citizens.