TARLAKENYO (August 1, 2024) — Senators Alan Peter and Pia Cayetano are calling for an investigation into the transfer of excess funds from the Philippine Health Insurance Corporation (PhilHealth) to the Bureau of Treasury.
In Resolution No. 1092 filed on July 30, the sibling senators sought to confirm whether or not the transfer complies with legal requirements.
They also stressed the need to guarantee that the P20-billion fund transfer does not undermine PhilHealth’s capacity to provide essential and affordable health care, especially to the most vulnerable Filipinos.
“In light of the various deficiencies and challenges in PhilHealth’s programs, it is critical to ensure that the transfer of funds does not further compromise PhilHealth’s ability to deliver on its mandate of providing comprehensive and affordable health care to its members, particularly the marginalized and vulnerable members of society, and does not violate existing laws,” the senators noted in the resolution.
Chaired by Senator Pia Cayetano, the Senate Committee on Accountability of Public Officers and Investigations, commonly known as the Blue Ribbon Committee, will begin hearings in August.
The issue began on February 27, 2024, when the Department of Finance (DOF) issued Circular 003-2024 directing the DOF to collect excess funds from government-owned or controlled corporations by reviewing and adjusting their reserve funds, as specified in the General Appropriations Act for FY 2024.
In justifying the legality of the fund transfer, the DOF released a statement saying the unused government subsidies “are not part of PhilHealth’s reserve funds, nor income that is being restricted by the Universal Health Care Act.” The Department also said the move was approved by the PhilHealth board.
However, many health advocates and medical groups argue that this transfer could violate laws meant to ensure surplus funds enhance health care services.
The Cayetanos said more than 35 medical groups urged President Ferdinand Marcos Jr. “to order the return of the P89.9 billion in unused funds to PhilHealth, emphasizing that the fund should be used to meet the health care needs of the underprivileged.”
They added that the objectives of the Universal Health Care Law to “ensure that all Filipinos are guaranteed equitable access to quality and affordable health care goods and services, and protected against financial risk” have not been fully realized.
As chair of the Blue Ribbon Committee, Senator Pia said this issue demands transparency to the public.
“We follow the law that this is only for the use of PhilHealth, to fund additional programs and services… Like the health advocates, I’m very concerned. I don’t want the funds for healthcare to be slashed or reduced,” she said.
