Supreme Court Associate Justice Antonio Kho Jr. on Tuesday raised the possibility that a comprehensive reform or restructuring of the Philippine Health Insurance Corporation (PhilHealth) may now be necessary, citing concerns over the agency's alleged noncompliance with legal provisions on the proper utilization of its funds.
Kho issued the statement as the high court resumed oral arguments on the highly contested move to transfer PhilHealth's excess reserve funds, amounting to P89.9 billion, to the national treasury. His remarks highlighted growing apprehensions about the state health insurer's management of public resources and the need for systemic changes to ensure transparency, accountability, and adherence to the law.
“It may be time to seriously consider overhauling PhilHealth and replacing its board for its apparent failure to comply with the requirements of the law,” Supreme Court Associate Justice Antonio Kho Jr. told Department of Health (DOH) spokesperson Albert Domingo.
Kho stressed that the burden of the agency's shortcomings should not fall on ordinary citizens who are unable to fully access the benefits promised to them. “It’s not the people's fault if they are not receiving these benefits. Based on your own statements, the blame lies with the administration—whether it’s the current one, the previous one, or even earlier administrations—as well as with the PhilHealth board,” Kho said.
His remarks reflect growing frustration over the persistent issues plaguing PhilHealth, including allegations of mismanagement and inefficiency, which continue to hinder the delivery of essential healthcare services to millions of Filipinos.
Ordinary citizens should not be blamed for their inability to fully access the healthcare benefits they are entitled to. Based on your own statements, the real responsibility falls on the leadership—whether it be the current administration, the past administration, or even earlier ones—as well as on the members of the PhilHealth board. It is clear that the failure to deliver these services stems from long-standing issues in governance, policy implementation, and oversight, rather than any fault on the part of the people who rely on PhilHealth for their health coverage. This pattern of neglect and mismanagement across multiple administrations has ultimately deprived Filipinos of the support they deserve from the country's health insurance system.
This statement followed after Justice Kho raised concerns over how PhilHealth determined the amount it requested under the General Appropriations Act (GAA). He questioned the basis and accuracy of the agency’s budget proposal, which, by law, should be funded through tax collections, including revenues generated from so-called "sin taxes" on products like alcohol and tobacco, as well as proceeds from gaming activities. Kho pointed out the importance of ensuring that PhilHealth’s budget requests strictly comply with the legal guidelines on funding sources, as these public funds are intended to support vital health services for millions of Filipinos. His remarks highlight the need for transparency and accountability in how PhilHealth calculates its financial needs and allocates resources, particularly given the significant amounts involved and the critical role the agency plays in delivering healthcare benefits.
According to Section 37 of the Universal Health Care (UHC) Act, the funding for PhilHealth is clearly defined and must come from specific sources. These include the total incremental revenues generated from sin taxes—such as those collected from the sale of alcohol and tobacco products—along with 50 percent of the national government's share of income from the Philippine Amusement and Gaming Corporation (PAGCOR). Additionally, 40 percent of the net charity fund of the Philippine Charity Sweepstakes Office (PCSO), after deducting documentary stamp tax payments, is allocated to PhilHealth. Other key funding sources include the mandatory premium contributions of PhilHealth members, the annual budget allotted to the Department of Health (DOH) under the General Appropriations Act (GAA), and direct subsidies from the national government to PhilHealth also provided through the GAA.
However, in the course of the oral arguments, DOH spokesperson Albert Domingo admitted that the department does not strictly follow the funding computation formula outlined in the law. Instead, the DOH has been applying a different method to determine the budget for PhilHealth, raising concerns over potential discrepancies in fund allocation and compliance with the UHC Act. This revelation adds to growing questions about whether PhilHealth’s financing operations are aligned with legal mandates and whether such deviations could be contributing to inefficiencies or funding gaps in the delivery of universal health care services to the public.
"It does not pertain to the computation of the sin tax allocation," explained DOH spokesperson Albert Domingo, clarifying that PhilHealth’s budget request is instead calculated based on the number of indirect members multiplied by the corporation’s premium rate. This method, he noted, deviates from the funding formula prescribed by law, which relies on specific revenue streams such as sin taxes and gaming proceeds.
Justice Kho responded by questioning whether PhilHealth was effectively disregarding its legally mandated funding sources in favor of a self-determined budgeting approach. In defense, Domingo explained that PhilHealth prioritizes a needs-based allocation framework over strictly following projected government revenue sources, aiming to respond to healthcare demands rather than just available funds.
However, Kho pushed back, arguing that PhilHealth’s self-imposed budget limitations hinder its ability to fully meet the healthcare needs of Filipinos. "The problem is PhilHealth restricts its own funding, and because of that, you fail to adequately address the health needs of the Filipino people," Kho said. "If you were to increase the budget by 200 percent, do you really think Filipinos wouldn't make use of those benefits? But instead, you are the ones setting your own limits."
Kho further emphasized that Congress allocates funds and collects taxes precisely to subsidize PhilHealth coverage for indirect contributors, and he questioned whether PhilHealth was sidestepping this purpose. "When you request funds for subsidies, does that mean you just ignore the law? You make your own formula based on your limited understanding of the actual healthcare needs of our people?" he said, partly in Filipino.
In response, Domingo acknowledged that the current administration under President Ferdinand Marcos Jr. agrees with Kho’s observations, viewing them as a “strong signal” for PhilHealth to enhance and expand the healthcare benefits it provides to the public.
Kho added that such recognition by the government also implies an obligation to return the P60 billion previously remitted by PhilHealth to the National Treasury. "Now that the government recognizes this, it is only right for the government to return the P60 billion that has already been transferred. That’s the logical next step," he asserted.
He further suggested that PhilHealth has the authority to formally request President Marcos to facilitate the return of the funds to ensure they are used for their intended purpose—financing the healthcare needs of Filipinos.
0 comments:
Post a Comment