Metro Manila, Philippines — The Department of Finance (DOF) said its circular ordering state health insurer Philippine Health Insurance Corp. (PhilHealth) to remit ₱89.9 billion in unused subsidies to the Bureau of the Treasury is legal.
“Sinusundan lang natin ang utos ng Kongreso. Nakapaloob sa budget ng 2024 kung saan sinabi ng Kongreso na dapat ang DOF ay mag-issue ng circular para magamit ang mga pondo natin na posibleng hibernating lang,” Finance Secretary Ralph Recto said in a post-SONA discussion on Tuesday, July 23.
[Translation: We are following the order of Congress under the 2024 budget, which states that the DOF must issue a circular to utilize possible hibernating funds.]
Recto said the DOF consulted the Governance Commission for GOCCs, Office of the Government Corporate Counsel, and the Commission on Audit if the move is legal.
“Ang balik sa amin ligal lahat ito,” Recto said in the government forum held in Pasay City.
[Translation: They told us it was legal.]
The agencies and offices mentioned by Recto have yet to issue statements on the matter.
Recto said at least ₱200 billion are “sleeping” in the Philippine Deposit Insurance Corporation and PhilHealth.
After DOF’s examination, he said tapping unutilized funds for priority unprogrammed projects will help in the country’s economic growth “by more or less 0.8%.”
“Mas madaling makamit natin ang 6% growth rate or 6.5% growth rate sa taong ito. Dagdag pa diyan, makakalikha ng mahigit na 600,000 trabaho,” the finance chief said.
[Translation: We will easily achieve a 6% or 6.5% growth rate. In addition, it will create over 600,000 jobs.]
He also said PhilHealth has over ₱500 billion in reserve funds.
“Kahit tanggalin pa yong ₱89.9 billion, meron pa ring ₱500 billion good for the next three years or more, at ito’y in fact mapapabilis pa ang pagsasaayos ng PhilHealth ng efficiency, ng mga programang ginagawa nila,” he added.
[Translation: Even if we remove the P89.9 billion, there’s still P500 billion good for the next three years or more to improve their efficiency and programs.]
Health money for health
At the sidelines of another post-SONA discussion, Health Secretary Ted Herbosa explained that the ₱89.9 billion remitted to the Treasury is not from members’ contributions.
Herbosa also said PhilHealth wrongly labeled the unused funds meant for government subsidies for the poor as savings. For him, it must be “unprogrammed appropriations.”
“Ang request ko since this is health money, gamitin din natin for health,” Herbosa also said, adding Recto promised to do it.
[Translation: My request is since this is health money, let’s also use it for health.]
Around ₱27.4 billion of it was already released as the overdue health emergency allowance for pandemic workers, the health secretary said.
Senate Deputy Majority Leader JV Ejercito said he wanted the state insurer to explain “why their funds have not been properly utilized.”
“This is a significant oversight on the part of PhilHealth as many hospitals remain unpaid,” he added.
