6 ex-DOH chiefs buck PhilHealth fund transfer

MANILA, Philippines — Six former secretaries of the Department of Health (DOH) have expressed opposition to the Philippine Health Insurance Corp. (PhilHealth) fund transfer.

In a letter to Finance Secretary Ralph Recto, former health secretaries Jaime Galvez Tan, Manuel Dayrit, Francisco Duque III, Esperanza Cabral, Enrique Ona Jr. and Paulyn Jean Rosell-Ubial, along with groups of health professionals, urged the Department of Finance (DOF) “to be sensitive to public opinion and exercise prudence and caution by not transferring the next tranche of funds and succeeding transfers.”

At least 65 medical organizations staged a protest action, dubbed “white coat rally,” at the Philippine General Hospital in Manila yesterday to express their opposition to PhilHealth’s scheduled fund transfer of P10 billion to the national government on Wednesday.

This developed following remittance by PhilHealth of the initial P20 billion last May.

The groups, including the Philippine Medical Association, Philippine College of Physicians, Philippine Pharmacists Association, Philippine Nurses Association, Philippine League of Government and Private Midwives and Philippine Physical Therapy Association, demanded the government stop further transfers of PhilHealth funds to the national treasury.

Earlier, concerned groups and individuals representing the labor sector and grassroots communities filed a petition at the Supreme Court (SC) questioning the constitutionality of the fund transfer.

Last Tuesday, the SC ordered Congress, the DOF, the executive secretary and PhilHealth to comment on the petition within 10 days.

It was last July when medical societies conducted a press conference where they urged President Marcos to stop the diversion of the P89.9-billion PhilHealth funds, calling for systemic reforms in PhilHealth and protection of the benefits of members as mandated by Republic Act 11223, or the Universal Health Care (UHC) Act.

They argued that PhilHealth funds belong to direct and indirect PhilHealth contributors and should not be used for other purposes.

Despite their pleas, no order from the government has been released to stop the scheduled transfer of the second tranche tomorrow, provoking medical professionals – who are daily witnesses to suffering patients in dire need of health care benefits – to implore the executive branch to exercise prudence and cease the transfer of the funds.

They also expressed openness to dialogue with the concerned government agencies regarding the transfer of funds.

The groups argued that the transfer of the unused PhilHealth funds is against Section 11 of the UHC Act, and is tantamount to taking away people’s money.

The law states that excess in PhilHealth reserve funds should be used to increase the program’s benefits and decrease the amount of members’ contributions.

It said no portion of the reserve fund or income should accrue to the general fund of the national government, or to any of its agencies or instrumentalities, including government-owned and controlled corporations.

No impact

Meanwhile, Recto reiterated that tapping PhilHealth’s idle funds would not impact the plan to expand benefit packages for members.

In his latest statement, Recto maintained that the DOF move to ask PhilHealth to transfer almost P90 billion in sleeping funds is consistent with the medical principle of “do no harm.”

“This will not affect the day-to-day operations of PhilHealth, as well as the contribution of members,” he said.

“We will not reduce even a single centavo from the benefits that members will receive,”

The finance chief argued that by the end of the year, PhilHealth would have a net income of P61.18 billion.

PhilHealth profit has steadily increased from P4.66 billion in 2019 to P173.46 billion last year.

Similarly, the state insurer will receive another P70 billion in government subsidies next year that will be used to expand its benefit packages.

The DOF’s move to sweep idle funds of state-run corporations is in line with the General Appropriations Act of 2024 to fund unprogrammed appropriations.

The initial PhilHealth remittance of P20 billion was used to cover the emergency allowances of health workers and frontliners worth P27.5 billion representing 5.04 million claims.

The rest of the funds will be used to support projects on nutrition, education, agriculture, social development and infrastructure. — Louise Maureen Simeon, Evelyn Macairan