AMID issues hounding the Philippine Health Insurance Corporation (PhilHealth), its Board of Directors reduced funds allocated for the agency’s 30th anniversary celebrations next year.
The original anniversary budget was P137.8 million. Disapproved by the board was some P37.5 million for “collaterals” under the proposed “marketing and promotional expenses” for the anniversary celebration, like P13.65 million for jackets.
The others are P7.9 million for umbrellas, P7.3 million for perforated mesh stickers, P3.64 million for anniversary shirts, P1.94 million for marketing shirts, P1.82 million for tote bags, P750,000 for “katsa” bags, and P545,000 for button pins.
The reduction in anniversary funds was announced in a statement released by the Department of Health.
“The Board of Directors decided to cancel the proposed procurement to save government funds, and ensure its proper allocation for the benefits of PhilHealth members,” said Health Secretary Teodoro Herbosa, chairman of the PhilHealth board.
He also said the “official proposal for the marketing and promotional expenses reached the board only on December 16, “and was immediately vetoed.”
He said decision reduce the allocation was reached as the PhilHealth Board wants more “financial responsibility” to be exercised by the state-run health insurer.
The PhilHealth board is a separate entity from the agency’s management.
Aside from Herbosa who chairs the board, the ex-officio members are the secretaries of the Departments of Finance, Budget and Management, Social Welfare and Development, and Labor and Employment.
PhilHealth president Emmanuel Ledesma Jr heads the management side.
“The PhilHealth Board of Directors reviews and decides on proposals coming from the PhilHealth management,” said Herbosa.
The issue on the anniversary celebration budget comes on the heels of the decision of the bicameral conference committee to cut the 2025 budget allocation for the agency by taking out its subsidy from the national government.
It also comes after the controversial transfer of the P89.9 billion PhilHealth excess funds to the Department of Finance, which was eventually stopped by the Supreme Court.
Earlier, a former president of the Philippine College of Physicians slammed PhilHealth for allegedly spending P138 million for its Christmas party.
PhilHealth has belied the allegations of Dr Anthony Leachon, saying the amount is for the year-round 30th anniversary celebrations.
At the Senate, Sen. Loren Legarda asked PhilHealth during a hearing if it will use the P138 million for members’ additional benefits, as a gift to members on its anniversary.
Ledesma said that the amount was recommended by a group of people “within PhilHealth” and added the amount was brought down to just “a few hundred thousand pesos.”
“So to clarify everything, there’s no hundreds in millions, there’s no millions. We are only planning to spend a few thousand pesos for the anniversary… No excessive amount. There were proposals but those did not push through,” he said in mixed Filipino and English.
But Legarda said that based on documents available, PhilHealth would be spending P137.7 million, of which P32 million was earmarked for its gala night, and P13 million for its sportsfest, among others.
“What is this proposal of a brilliant person? It’s good that someone opposed this. And there is a board. This gala night and sportsfest, P32 million and P13 million while there are millions of Filipinos who need health care? So, this erased?,” she said in mixed Filipino and English.
Legarda then pressed Ledesma on who recommended the amount of P137.7 million.
Ledesma said, “It was endorsed by a group inside PhilHealth… We have an anniversary committee … it is headed by Rey Balena.”
While it was just a proposal, Sen. Christopher Go said, PhilHealth should be spending its money on members’ benefits and not on other things.
Legarda asked PhilHealth to clarify as to how much it actually has amid conflicting reports that it has P600 billion, while other reports said it has P489 billion in total excess funds.
Renato Limsiaco Jr., head of PhilHealth’s fund management sector, said the agency has P628.2 billion in total assets as of September this year, P281 billion in reserved funds, and P150 billion in surplus funds.
Legarda asked if the P281 billion and P150 billion, which total P431 billion, was part of the P628.2 billion, and again Limsiaco gave a confusing answer.
“Based on our financial report, Mr. Chair, this one is October 2024, our reserve fund is in the amount of P281 billion … and we have a surplus of P150 billion. Meaning from our members’ equity minus the reserve fund of P281 (billion), the difference is P150 (billion),” Limsiaco said.
Legarda said if she sums up P628.2 billion, P281 billion, and P150 billion, PhilHealth has more than P1 trillion funds on hand.
“So, this means P281 billion and P150 billions equals P431 billion. This is different from the P600 billion? So, you have P600 billion plus P431 billion. So, you do not only have P600 billion but P1 trillion? …we got that amount of P600 billion from what we read on newspapers and with what the DOH said which PhilHealth has, P600 billion in cash),” Legarda said.
She also said, “Earlier, I think we have been through this for an hour already. All of your colleagues, including the CEO and your attorney, said PhilHealth has P281 billion in reserve funds and P150 billion surplus funds. They (CEO and layer) said that this is part of the P600 billion. Mr. Limsiaco now is saying that this (P431 billion) is apart from the P600 billion. So, this means your assets, cash and non-cash is P1 trillion? Please explain,” she added.
Limsiaco said the reserve funds and surplus funds are backed by PhilHealth total assets amounting to P628.2 billion, of which P489 billion is its “investment portfolio” which is placed in bank and financial institutions. – With Raymond Africa
