THE Commission on Audit has “affirmed with finality” its January 31, 2020 decision that upheld the notice of disallowance (ND) issued against Philippine Health Insurance Corp.’s (PhilHealth) grant of P95,462,027.42 million hazard pay, subsistence allowance, and laundry allowance to its personnel in 2014.
In a 15-page ruling released last week, the COA en banc denied the motion for reconsideration filed by the state health insurer that sought the lifting of the ND.
PhilHealth, through senior vice president of legal sector Jose Mari Tolentino, insisted that the Supreme Court had already classified PhilHealth personnel as public health workers (PHWs).
As PHWs, PhilHealth said its personnel are entitled to hazard pay, subsistence, and laundry allowances under the National Health Insurance Act (RA No. 7875).
It added that former President Gloria Macapagal-Arroyo had likewise previously confirmed the fiscal authority of the PhilHealth in 2006 and in 2008 backed by Opinion No. 258 s. 1993 of the Office of the Government Corporate Counsel (OGCC).
In denying the MR, the COA en banc said the PhilHealth propounded nothing but rehashed arguments that were already considered and overruled in denying its petition for review.
“It is the consistent position of this Commission that, even if they are PHWs, the entitlement to the benefits is not absolute as it is subject to the other conditions under RA No. 7305 or the Magna Carta of PHWs and its Implementing Rules and Regulations (IRR),” the COA declared.
To qualify for hazard pay, a public health worker must be assigned to hospitals or other health facilities that handle contagious or communicable diseases, radiation-exposed areas, chemical and medical laboratories that receive infectious specimens, conflict zones, or correction and drug rehabilitation centers where there are risks of bodily harm.
On the other hand, entitlement to subsistence allowance is contingent upon a PHW being on-call “at any and all times” while assigned in a hospital, infirmaries, or any government office.
It stressed that PHWs who are not required to make themselves available at all times are not entitled to receive subsistence allowances.
“The [High] Court has previously discussed that the award of WESA (welfare support allowance) or subsistence allowance is not a blanket award to PHWs and that it is granted only to those who meet the requirements of RA No. 7305 and its IRR, and thus, a sweeping grant of the same justifies its disallowance,” the COA said.
Likewise, the Commission said a laundry allowance may be paid to PHWs who work in health-related establishments to defray the cost of having to wear and wash/press protective clothing to provide them a degree of protection.
“In view of the foregoing, this Commission finds it proper to affirm the disallowance pertaining to the Hazard Pay, Subsistence and Laundry Allowances, in the total amount of P95,462,027.42, and to sustain the contested decision inasmuch as the conditions …have not been complied with,” it added.
