The Philippine Chamber of Commerce and Industry (PCCI) yesterday called on government to consider a reorganization in the leadership the Philippine Health Insurance Corp. (PhilHealth) amid allegations the state-owned insurance provider has been sitting on idle funds.
In a statement yesterday , the PCCI called for greater transparency in the use of funds by PhilHealth through regular performance audits.
PCCI said rather than raise membership contributions, PhilHealth should increase the healthcare benefits and packages of covered illnesses of its members.
It lamented the fact that despite government subsidies to, and substantial reserve funds of PhilHealth, its financial assistance to members continues to be severely deficient.
“Despite posting surplus funds, the agency’s health insurance coverage is still at the bare minimum; members continue to disproportionately shoulder the burden of their hospital and healthcare expenses,” said PCCI president Enunina Mangio .
She added: “These funds are contributions from the hard-earned money of its members.
These should be plowed back to members in the form higher rate of benefits including hospitalization, and the expansion of covered illnesses.”
PCCI noted that aside from higher contribution rates to cover for the Universal Health Care law, government provided subsidy for the estimated 37 percent beneficiaries comprising the elderly and very low-income contributors.
The group cited figures that said as of December 2023, PhilHealth reported a net income of P173.46 billion while accumulated fund reportedly stands at P700 billion.
With PhilHealth’s operating cash flow at above P70 billion per annum, PCCI said the national government should suspend the implementation of the remaining 1 percent increase in members’ contribution.
“PhilHealth has shown its solvency. It does not need another rate hike to sustain its operations and services to its members, it needs efficient management of its funds,” Mangio said.
