Bill seeking to grant President power to reorganize, privatize entire or segments of PhilHealth filed

MANILA, Philippines — A bill which seeks to grant the President power to privatize any or all segments of Philippine Health Insurance Corp.(PhilHealth) was filed Wednesday in the House of Representatives.

House Bill No. 7429 or Social Health Insurance Crisis Act of 2020 was filed by Marikina Rep. Stella Luz Quimbo amid alleged corruption activities hounding the agency.

The bill gives the President the power to revamp and reorganize the PhilHealth leadership in a move to privatize any or all segments of the agency “to make them more effective and innovative to address the social health insurance crisis.”

“For this purpose, the President may abolish or create offices, transfer functions, equipment, properties, records and personnel; institute drastic cost-cutting and other related measures to carry out the said objectives,” the bill states.

Quimbo, however, clarified that the bill only seeks to reorganize PhilHealth and not completely abolish it.

Further, the measure proposes the creation of an Joint Executive-Legislative Social Health Insurance Crisis Commission which is tasked to “carry out all steps necessary” towards the reorganization of PhilHealth.

The Commission shall be chaired by the Executive Secretary while its members include the secretaries of the Department of Health, Department of Finance, Department of Labor and Employment, and Department of Social Welfare and Development, the chairman of the Governance Commission for GOCCs, and the chairmen of the appropriate Senate and House committees as designated by the leaders of both Houses of Congress, as well as a representative of the minority from each House.

Moreover, the Commission shall also designate a Transition Management Team, to be chosen through competitive selection, to assume the management of the corporation for the next two years from the effectivity of the measure, or until such time that the reorganization of PhilHealth is completed.

“In this time, the Transition Management Team is tasked to improve the management of PhilHealth and the [National Health Insurance Program], and help transition the corporation towards effective privatization,” the bill states.

“The Team itself will be contracted from senior management within the private sector who possess the necessary technical expertise to ensure the proper management of the NHIP,” it adds.

During an online press briefing of the House’s minority bloc, Quimbo called on her colleagues for the immediate passage of the bill. She likewise asked for the support of the executive branch.

“Mabigat ang krisis ngayon sa social health insurance at kailangan na natin gamitin ang expertise ng private sector para magamit nang mabuti ang perang kinakaltas sa ating mga manggagawa,” Quimbo said.

(We are facing a heavy crisis in our social health insurance and we must use the expertise of the private sector so we can use for good the money of our workers.)

The alleged anomalies in PhilHealth is currently being investigated, in aid of legislation, by both the Senate and the House.

Among the issues mounted against PhilHealth include the alleged overpriced information technology equipment procured by the corporation, the alleged manipulation of its financial statements, the implementation of its case rate system, and the implementation of its interim reimbursement mechanism (IRM).

“May renal failure na ang sistema ng PhilHealth. Naghihingalo na ito dahil sa maling mga polisya tulad ng IRM. Hindi na sapat ang dialysis lang,” Quimbo said.

(PhilHealth’s system already has a renal failure because of policies such as IRM. It cannot be solved by a mere dialysis.)

“Transplant ang kailangan sa paggaling ng PhilHealth at ito ang susi sa paggaling din ng milyon-milyong Pilipino,” she added.

(What is needed is a transplant for the recovery of PhilHealth and this is the key for the recovery of millions of Filipinos.)

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JE