THE Commission on Audit has affirmed the disallowance issue against the P69.2 million Educational Assistance Allowances (EAA) granted to officials and employees of the Philippine Health Insurance Corporation (PhilHealth) Head Office (HO) in 2013.
However, it lifted the disallowance against the payout of hazard pay and subsistence and laundry allowances to PhilHealth HO personnel amounting to P35.77 million.
A notice of disallowance bears with it a requirement for persons held liable to refund the disallowed amount in full.
In its eight-page decision, the COA Commission Proper held that as a government-owned or controlled corporation (GOCC), PhilHealth is required to secure the prior approval of the Office of the President before it can grant additional or an increase in the allowances and benefits of its personnel.
“Without the requisite OP approval, PhilHealth’s payment of the subject allowances and benefits to its personnel remains irregular,” the COA declared.
The PhilHealth asserted that in 2006 and 2008, its fiscal autonomy was confirmed by then President Gloria Macapagal-Arroyo through letters approving its PhilHealth Rationalization Plan and Reengineered Organization of PhilHealth.
However, the COA noted that there was nothing in either letter that specifically approved the disallowed benefits, adding it was insufficient to amend the RA 7875 or the National Health Insurance Act of 1995.
“Upon careful examination of the disallowed benefits and allowances, it is evident that the EAA is an invalid incentive. The EAA given to employees of PhilHealth HO encompasses an increase of emoluments and other allowances not presently provided by law,” the commission said.
However, with regard to the hazard pay and subsistence and laundry allowances, the commission said PhilHealth employees are now considered public health workers (PHWs) based on the 2021 Supreme Court decision in PhilHealth vs. COA and are now entitled to such benefits.
Still, it reminded PhilHealth of the propriety of the amount granted and the entitlement of the PhilHealth personnel would have to undergo evaluation by the audit team to ascertain compliance with the Department of Budget and Management-Department of Health Joint Circulars and RA No. 7305 or the Magna Carta of Public Health Workers.
Hazard pay is granted to public health workers whose duties and location of work expose them to great danger, occupational risks, perils to life, and physical hardships.
Subsistence allowances are paid to PHWs who are assigned to hospitals, clinics, infirmaries and similar facilities and those who are required to be on call for extended hours.
PHWs are also allowed laundry allowance to help them maintain their protective outfit and uniforms for their protection and reassure patients of their professionalism and competence.
