In a public hearing on Tuesday, July 30, conducted by the Senate Committee on Health, chaired by Senator Christopher “Bong” Go, top officials from the Department of Finance (DOF), Department of Budget and Management (DBM), and the Philippine Health Insurance Corporation (PhilHealth) were questioned regarding the planned transfer of PhilHealth excess funds to the National Treasury and its implications on healthcare services.
“Uulitin ko — legally, baka meron kayong magandang sagot o palusot. But morally? For me, this is unacceptable. Ang pondo para sa kalusugan ay dapat gamitin para proteksyunan ang kalusugan ng taumbayan,” Go said.
“To our finance managers, alam ko ginagawa nyo lang yung trabaho niyo… But please, as chair of this health committee. Please prioritize health! Ang kalusugan ay katumbas ng buhay ng bawat Pilipino… Aanhin natin ang excess funds na gagamitin para sa anumang priority projects kung patay na ang Pilipino,” he appealed.
Go questioned whether it was morally and legally right for the government to transfer funds intended for healthcare for other purposes. He emphasized that while there are other priorities that need to be funded, the health and well-being of Filipinos are of primordial concern.
“Ngunit tanong ko lang po, Secretary (Ralph) Recto, can you spare the health funds dito sa pagwawalis mo (ng sobrang pondo)? Spare the health funds,” Go asked.
Go highlighted the critical needs of the healthcare sector, pointing out that many patients struggle to afford essential services amid PhilHealth’s substantial reserve funds: “Ang dami po mga benefit packages… I’m sure, sa nakikinig na mga doktor dito, ang daming request na sana naman i-increase naman itong mga benefit packages namin.”
In response, DOF Secretary Ralph Recto expressed gratitude for the opportunity to clarify misconceptions. He emphasized that the legal authorization for the DOF’s actions stemmed from Republic Act No. 11975, or the General Appropriations Act of 2024.
READ: Recto: Transfer of PhilHealth’s P20B excess funds legal
Recto clarified that the collection of unused funds from GOCCs, including PhilHealth, was legal and aimed at supporting economic growth. He noted that this process involved rigorous review and legal consultations.
Regarding the planned transfer of PhP90 billion to the National Treasury from PhilHealth, Recto assured that the funds will not be withdrawn all at once: “Nire-respeto namin ang cash management operations ng PhilHealth. Kaya’t meron po tayong remittance schedule, hindi ito one-time big time.”
Recto also reassured that PhilHealth remains financially stable with a significant benefit chest fund: “May natitirang PhP500 billion benefit chest fund ang PhilHealth. Ayon mismo sa kanila, labis-labis at kasyang-kasya ito sa mga bayarin para sa multi-year claims.”
PhilHealth President Emmanuel Ledesma confirmed the existence of a substantial reserve fund and emphasized ongoing efforts to enhance benefit packages for all Filipinos who are PhilHealth members.
However, Go questioned why there are excess funds in the first place that should have already been used to improve PhilHealth benefits for patients. He also questioned the rationale behind allocating PhP90 billion of excess funds to other purposes when they could significantly enhance PhilHealth’s service offerings.
The senator highlighted specific areas where these funds could make a life-saving difference, such as dialysis treatments, mental health services, and Z-benefit packages for severe illnesses. He brought up real-life scenarios of patients desperate for these services, some of whom had resorted to extreme measures due to inadequate government support.
He also highlighted the plight of ordinary Filipinos struggling to access healthcare services despite PhilHealth’s substantial reserves. He challenged Ledesma: “Puntahan n’yo ‘yung mga hospital, kung hindi ka ba dumugin doon sa mga hospital billing. Subukan n’yo lang po. Samahan kita.”
Meanwhile, Health reform advocate Dr. Anthony Leachon voiced his concerns about the ethical implications of the fund transfer: “The purported excess funds must be used instead to alleviate the plight of the indigent patients in our health facilities. The said inappropriate transfer of funds is considered a violation of the law, primarily concerning the mandate of PhilHealth, wherein the collection must be solely used to benefit its members.”
Similarly, Dr. Hector Santos Jr., President of the Philippine Medical Association, underscored the financial struggles faced by patients due to insufficient benefit packages despite the apparent availability of PhilHealth funds.
With the existence of excess funds, Go then urged for a reduction in PhilHealth contribution rates to unburden Filipinos: “Hindi matatanggap ng mga medical experts natin, mga ordinaryong Pilipino, mga medical workers natin, mga mahirap na mga pasyente, na natutulog ‘yung pondo dyan, baka next year na naman, kung tulog ‘yung pondo, eh, kukunin na naman po ng Department of Finance, then sobra ‘yung pondo ninyo.”
He urged PhilHealth to utilize its funds effectively and reduce the financial burden on citizens: “Marami po mga pasyente, naghihingalo. Pasyalan niyo po ‘yung mga hospital. Dami talagang namamatay, na walang pambayad, uuwi na lang po. Alam ng taumbayan ‘yan. Nakikinig po ‘yun. Kawawa talaga. Gawin n’yo po ang inyong trabaho.”
The hearing ended with commitments from both PhilHealth and DOF to address the concerns raised, further improve Philhealth packages, and recommend the reduction of PhilHealth contributions from its members.