MANILA, Philippines — Amid opposition from medical groups, former health secretaries and other groups, the second tranche of idle funds from the Philippine Health Insurance Corp. (PhilHealth) worth P10 billion has been transferred to state coffers.
Asked to confirm whether the transfer proceeded yesterday as scheduled, Finance Secretary Ralph Recto answered in the affirmative.
“Yes. There’s a schedule of remittances,” Recto said in a Viber message.
The P10 billion is part of the P89.9-billion in “unused” funds of PhilHealth that the Department of Finance ordered returned to the Bureau of the Treasury to fund unprogrammed appropriations – the latest version of the congressional pork barrel.
Sen. Risa Hontiveros is urging PhilHealth to stop the transfer of the remaining P70 billion amid a petition asking the Supreme Court to declare the impounding of the funds as illegal and unconstitutional.
The first tranche amounting to P20 billion was remitted in May and was used to pay the emergency allowances of health care workers.
After this month’s transfer, another P30 billion is scheduled for transfer in October and the remaining P29.9 billion is scheduled in November.
The second tranche transfer proceeded as scheduled even after opposition from stakeholders, including health care workers, advocates and former Department of Health secretaries.
The return of the funds also pushed through despite the petition filed before the Supreme Court to halt such a move.
A few days ago, even PhilHealth president and chief executive officer Emmanuel Ledesma said the state health insurer would remit the P10 billion as they heed the directives.
“We will follow what the Supreme Court will say,” Ledesma added.
During the Kapihan sa Manila Bay forum yesterday, Budget Secretary Amenah Pangandaman backed Recto, her fellow economic manager, amid the PhilHealth controversy.
“We are just following what’s in the General Appropriations Act, what’s in the law,” Pangandaman said.
“There’s also an excess of P500 billion in the coffers of PhilHealth. So, we’re just putting (idle funds) into good use also,” she added.
The budget chief maintained that the decision is all about cash and resources management.
Stop transfer
With the country’s credit rating upgraded by a Japan-based debt watcher, PhilHealth should stop the transfer of the remaining P70 billion in unused funds to the national government, Sen. Risa Hontiveros said yesterday.
Hontiveros highlighted the recent credit rating upgrade by the Rating and Investment Information (R&I) agency as a reason for PhilHealth to reconsider its remittance of funds to the national government.
“Since our credit rating has been upgraded by the Rating and Investment Information, there is no reason for PhilHealth to continue to remit funds to the national government because there will be more funds that can be spent on health services,” she said.
“According to the President himself, what we save from paying interest on our debts can be used for the good of our countrymen,” she added.
For the senator, who is the author and advocate of the Universal Health Care Act, PhilHealth members are at a disadvantage in the fund transfer, as it raises serious questions about the credibility of PhilHealth’s leadership and management in fulfilling the mandate of the UHC law.
To strengthen the UHC law, Hontiveros introduced amendments to the law to ensure that PhilHealth funds obtained from any source will remain with the state health insurer and be used to lower the premium contribution rates of members and increase the benefits for patients in need.
“Through this amendment, there is no longer any doubt and there is no longer an alternative opinion,” she said.– Cecille Suerte Felipe