PhilHealth lowers medical reimbursements, but doubles employee salaries

PAYOUTS for members of the Philippine Health Insurance Corp. (PhilHealth)—those reimbursements for expenses for hospitalization and medicines—were lower last year and in 2008, but the salaries of PhilHealth employees almost doubled, according to local research group Ibon Foundation Inc. 

In a statement, IBON said PhilHealth “personal services itemization and plantilla of personnel” increased to P2.08 billion in 2008 from P1.19 billion in 2007 and P693.5 million in 2006.

“The PhilHealth president/CEO, for instance, is reported to have received P2.19 million in 2009. Personal services include the government agency’s spending for personnel benefits, cash gifts, travel expenses, allowances and other compensations,” IBON said in a statement. 

When compared to benefit payments, IBON said, payments for personnel services increased faster than benefit payments and even the average benefit payments per member decreased. 

Ibon cited data showing benefit payments increasing to only P18.15 billion in 2008 from P17.45 billion in 2007 and P17.1 billion in 2006. In terms of the average benefit payments per member, Ibon said this slightly decreased in real terms so that average benefit payments per member, without inflation, increased to P1,068 in 2009 from P1,101 in 2007. 

“The high spending for PhilHealth’s personal services shows how state officials benefit from the government’s social health-insurance policy, which is supposed to subsidize those who cannot afford health care,” said Ibon. “We call this spending unreasonable, especially amid poor public health service and falling national government budget spending for health.”

Ibon noted other reports that also revealed that executives of several government-owned and- controlled corporations (GOCCs) and government financial institutions (GFIs) have been receiving huge salaries and bonuses. 

No less than President Aquino reported some of these huge salaries and bonuses. One GOCC mentioned in President Aquino’s State of the Nation Address was the Metropolitan Waterworks and Sewerage System (MWSS) where salaries were, as some commentators put it, “astronomical,” and led one senator to ask MWSS executives in a hearing if they also have Bonifacio Day bonus, in reference to the numerous bonuses given the executives. 

President Aquino said in his Sona that the total budget of the MWSS in 2009 reached P211.5 million. Around P51.4 million, or 24 percent, of this was for the MWSS payroll, while P160.1 million, or 66 percent, was for additional allowances and benefits. 

He also said the MWSS board of trustees receive a meeting allowance of P14,000, or P98 million every month, a grocery incentive of  P80,000 every year, and P2.5 million worth each of midyear bonus, productivity bonus, anniversary bonus, year-end bonus, financial assistance, Christmas bonus and additional Christmas packages. –Cai U. Ordinario / Reporter, Businessmirror