IC used P2.4 M for employees’ private HMO

MANILA, Philippines - The Commission on Audit (COA) took to task the Insurance Commission (IC) for spending P2.488 million in public funds to provide its officials and employees with private health insurance coverage last year.

In a 2014 report released yesterday, state auditors said the IC’s move was illegal because it had no approval from the Office of the President.

Records show the IC entered into a contract with Health Maintenance Inc. (HMI) to provide health support services to its officers, employees and their dependents from Sept. 1, 2014 to Aug. 31, 2015.

State auditors said the provision of the private health insurance was contrary to COA Resolution 2005-001 dated Feb. 3, 2005, which states the procurement of private health insurance by any agency of the government is “an irregular expenditure and constitutes unnecessary use of public funds.”

The audit team said the action also violated Section 3 of Administrative Order 103 issued in 2004, which directed national government agencies to suspend the grant of new or additional benefits to officials and employees.

State auditors said the IC should stop the grant of the health insurance in addition to what is provided by PhilHealth.

IC officials argued the services provided by HMI addressed the gap in employee welfare since the IC has no approved clinic, including doctors and nurses, to take care of the health and wellness of its employees.