SIX former secretaries of the Department of Health have joined growing opposition to the move of the Department of Finance to transfer funds from the Philippine Health Insurance Corporation (PhilHealth) to the National Treasury.
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, appealed to the finance chief “to cancel the diversion of P10B of PhilHealth funds to the national treasury scheduled for Aug. 21, 2024, and further transfers.”
To highlight their strong opposition, the former health chiefs and medical organizations opposing the transfer held a “white coat rally” yesterday at the Philippine General Hospital in Manila.
At least 65 organizations of healthcare workers, led by 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 that government stop further transfers of PhilHealth funds.
The former health chiefs and the organizations said it is unacceptable for the national government to take away the funds when the people are in dire need for health services.
“We are daily witnesses to patients, who are unable to get the care they desperately need due to the inefficiencies within our social health insurance system,” they said.
Instead of diverting such funds, they said it would be better if the benefits and services of PhilHealth will be improved further.
“We strongly believe that the solution to PhilHealth’s inability to use its funds is not to strip Filipinos of healthcare funding but to implement immediate and substantial PhilHealth reforms, such as increasing the scope and coverage of benefit packages,” they said.
The Department of Finance has directed PhilHealth to remit unused subsidies, amounting to almost P90 billion, to the national treasury. The fund transfer was subsequently questioned before the Supreme Court, with petitioners seeking a temporary restraining order and/or a writ of preliminary injunction to prevent the transfer of funds.
‘NO HARM’
Recto, in a statement yesterday, said the use of PhilHealth’s “sleeping funds for the government’s priority programs and projects will do no harm to its members nor on its plans to expand its benefit packages this year.”
He said even if the P 89.9 billion unused government subsidies will be transferred to the National Treasury, PhilHealth is still equipped with “around P550 billion in its coffers, which is more than enough to increase the benefits of its direct and indirect contributors, covering two to three years of expenses.”
“Madadagdagan ang benepisyo ng PhilHealth, at kahit dadagdagan ‘to, malaki pa ang kita ng PhilHealth, at ‘yung kinuha lang natin dito ay ‘di galing sa contributions ng members. Ito ay galing sa subsidiya ng gobyerno (There will be more PhilHealth benefits, and even if these are increased, PhilHealth will still have a big income. What we got were not from members’ contributions at subsidy from government),” he said.
Recto also said that by the end of 2024, PhilHealth will have a net income of P61.18 billion.
PhilHealth’s income has steadily increased since 2019, from P4.66 billion to P173.46 billion in 2023. In addition, PhilHealth will receive another P70 billion worth of government subsidies next year.
He also said the DOF’s move to sweep idle funds of government-owned and controlled corporations (GOCCs) is in line with Congress’ order under the General Appropriations Act (GAA) of 2024 to fund the unprogrammed appropriations.
The initial PhilHealth remittance of P20 billion to the National Treasury was used to cover health 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, which would have numerous benefits to the public, he said.
FUNDS MISUSE
Caritas Philippines, the social advocacy arm of the Catholic Bishops Conference of the Philippines, also opposed the transfer.
“It is our fear that the transfer of these funds for unprogrammed appropriations may lend this move to the misuse of the funds, not discounting exposing the funds to corruption,” said Caritas president Bishop Jose Colin Bagaforo.
“As a humanitarian non-government organization and an apostolic arm of arm of the Philippine Catholic Church, it is our civic and moral duty to appeal to the national government to discontinue this move and to return whatever funds have already been transferred to PhilHealth,” he added.
The prelate said the said funds must be returned as they belong to the millions of members of PhilHealth.
Bagaforo also expressed hope the Supreme Court will heed the people’s call for the return of the PhilHealth funds.
