PhilHealth: P138-M fund ‘reasonable’

Inquirer photo/Lyn Rillon

MANILA. Philippines — The Philippine Health Insurance Corp. (PhilHealth) clarified on Friday that the controversial P138-million budget exposed by a critic was meant for its anniversary next year, and not for a Christmas party.

“This is to clarify Dr. Tony Leachon’s post on his social media account maliciously accusing PhilHealth of excessive budget for its Christmas party. It is unfortunate that he is misinformed,” the government-owned health insurer said in a statement on Friday night.

PhilHealth countered the physician’s social media revelation of a supposed PhilHealth document showing that the health insurer set aside P137,766,032 items, such as coffee table books, newspaper features, building displays, tokens, giveaways and commemorative medals, “for [a] Christmas party.”

READ: DOH: PhilHealth benefits, services to remain despite zero subsidy

“Zero budget for PhilHealth,” the physician posted on his social media account, apparently addressing lawmakers.

“The PhilHealth leadership team is abusive for not using funds wisely,” Leachon posted in Filipino. “They are really shameless. The House and Senate won’t make them resign. Happy together. Good luck. So the people are suffering.”

Leachon revised his post later on Friday and it has been shared 18,000 times on social media.

Not final, but reasonable

PhilHealth, however, explained that “the breakdown of expenses posted by Dr. Leachon, which is not yet final, is intended for the 30th anniversary celebration of PhilHealth in 2025, a milestone year.”

“The approved activities are reasonable, budgeted following existing limits set by the Government, and will be procured under RA (Republic Act No.) 9184 [or the Government Procurement Reform Act],” PhilHealth said.

PhilHealth said the anniversary activities planned would “mount a meaningful observance of this milestone year” and “drum up interest” in health-care reform.

The health insurer has repeatedly been called out for its fiscal management of the mandatory contributions of Filipino workers, who separately pay taxes to the government.

The Supreme Court is still considering a petition, filed in August, questioning PhilHealth’s transfer of P89.9 billion in excess funds to state coffers.

Meanwhile, Sen. Pia Cayetano on Saturday said she was “seriously considering” asking the Supreme Court to nullify her colleagues’ decision to defund PhilHealth in the final version of the P6.352-trillion national budget for 2025.

The bicameral conference committee’s move stripping PhilHealth of P74.4 billion in government subsidies because of the health insurer’s excess funds.

“That is a violation of the sin tax law … That is the law we passed,” Cayetano, a lawyer, said in an interview with radio dwIZ.

The senator was referring to Republic Act No. 10351, which restructured excise on alcohol and tobacco products, which mandated the allocation of 80 percent of taxes collected from cigarettes and alcoholic beverages to bankroll the country’s National Health Insurance Program.

P69B in excise

She stressed the tax revenues from tobacco, alcoholic drinks and sweetened beverages were projected to reach P69 billion in 2025.

Although Cayetano was one of the vice chairs of the Senate finance committee, she said she was not informed that the state subsidy for PhilHealth was removed when the General Appropriations Act was approved on Wednesday.

Cayetano, who is seeking reelection in the May 2025 midterm elections under the administration ticket, agreed the state health insurer failed to properly spend its funds and that it could still access P600 billion in reserve funds.

Senate President Francis Escudero earlier said that allotting funds to PhilHealth was tantamount to “rewarding” it despite its failures, but Cayetano said the budget cut would affect the premiums of senior citizens, persons with disabilities and other nonpaying members.