PhilHealth to get P5 billion from national budget

CEBU, Philippines - The Philippine Health Insurance Corp. (PhilHealth) is assured of another P5 billion in fresh funding in the proposed P1.541-trillion General Appropriations Act of 2010, Cebu first district Representative Eduardo Gullas said.

Gullas said that as 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.

“The extra P5 billion is not a subsidy. This is meant to pay the national government’s arrears to PhilHealth. The P5 billion is intended to pay the government’s outstanding employer counterpart contributions to PhilHealth,” Gullas pointed out in his statement sent to The FREEMAN.

The P5 billion allotment for 2010, according to Gullas, is on top of the P5 billion that Congress 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,” Gullas said.

The veteran lawmaker has been urging the government to set as an example for private entities that are obliged to protect their workers and dutifully pay and remit their mandatory contributions to PhilHealth.

Nerissa Santiago, PhilHealth vice president for actuary, said that the government owed the national health insurer P19.2 billion, representing unpaid contributions for the mandatory coverage of civil servants.

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

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

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

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

Gullas renewed his call for PhilHealth to promptly curb its financial losses due to fraudulent and padded claims. — Garry B. Lao/LPM   (FREEMAN NEWS)