PhilHealth to get P5-billion funds from P1.54-trillion national budget next year

MANILA, Philippines – State-run health insurer Philippine Health Insurance Corp. (PhilHealth) is getting P5 billion in fresh funds from the proposed P1.541trillion national budget for 2010, Cebu Rep. Eduardo Gullas announced yesterday.

Gullas, head of the 12-man House panel in the bicameral Commission on Appointments, clarified that the P5-billion allotment for 2010 is not a subsidy but is a payment of the government’s arrears to the financially troubled insurance firm.

“We must stress that this extra P5 billion is not a subsidy. The P5-billion is intended to pay the government’s outstanding employer counterpart contributions to PhilHealth,” he pointed out.

The House deputy majority leader said that being the employer of 1.4 million civil servants, the government is required by law to provide them PhilHealth coverage, and pay for 50 percent of their premium contributions.

Gullas said the P5-billion allotment for 2010 is on top of the P5-billion that Congress has set aside this year for the government’s PhilHealth dues, and the P1.45-billion earmarked in 2008 for the same purpose.

“With the additional funding, government workers as well as other PhilHealth members are assured of adequate health insurance protection,” he said.

Gullas has been urging the government to set a positive example for private companies who have the obligation to remit contributions to PhilHealth for the protection of their workers.

PhilHealth vice president for Actuary Nerissa Santiago earlier told a Senate hearing that the national government owes the insurer P19.2 billion in unpaid contributions.

Santiago warned that unless the dues are paid right away, PhilHealth would become insolvent in seven years.

However, Budget Secretary Rolando Andaya disputed Santiago’s claim, saying the national government owes PhilHealth only P9 billion.

“Whatever the absolute amount owed by the government, what is important is that PhilHealth is already assured of getting another P5 billion,” Gullas said.

“This should keep the government’s outstanding balance at a level where it won’t put at risk PhilHealth’s financial stability, and at a level where the National Treasury won’t find it even more difficult to pay PhilHealth later on,” he added.

PhilHealth collects P100 to P750 in monthly premiums from every public and private sector worker. The employer pays 50 percent of the premiums. In return, workers get health insurance coverage through accredited service providers.

Gullas also renewed his appeal to PhilHealth to immediately curb its P4-billion annual losses caused by false and overstated claims by syndicates in cahoots with unscrupulous health service providers. –Delon Porcalla (The Philippine Star)