PhilHealth execs’ pay up by 175.72% in 2022 – COA

MANILA, Philippines — The compensation of top executives of the Philippine Health Insurance Corp. (PhilHealth) increased by 175.72 percent or to P72.244 million in 2022 from P26.202 million in 2021, figures from the Commission on Audit (COA) showed.

Based on PhilHealth’s financial statements attached in the COA’s 2022 annual audit report on the state-run health insurance firm, the total compensation of its “key management personnel” amounted to P72,244,313 in 2022 from P26,202,104 in 2021.

The total compensation included P71.45 million in salaries and wages, an increase of 172.7 percent from P26.2 million in 2021, and P794,063 in terminal benefits from zero such benefits in 2021.

“The key management personnel refer to the executive team, with the rank of senior vice president up to PCEO (president and chief executive officer). These individuals have the authority and responsibility for planning, directing and controlling the activities of the corporation,” the COA explained.

The compensation of PhilHealth’s top executives was included in the Personnel Services expenses of the agency for the year, which cover the salaries, allowances, bonuses and other benefits of all the personnel.

The COA’s record showed that PhilHealth’s Personnel Services expenses only had a slight increase year-on-year to P4.973 billion in 2022 from P4.277 billion in 2021.

The agency’s Other Operating Expenses also had a slight uptick to P4.254 billion from P3.545 billion in 2021.

The COA said the Other Operating Expenses represents the “administrative costs” relative to the implementation of the National Health Insurance Act of 2013.

A review of the COA’s Reports on Salaries and Allowances (ROSA) for 2022 and 2021 likewise reflected the huge increase in the salaries and benefits of top PhilHealth officials.

In 2021 for instance, PhilHealth president and CEO Dante Gierran had a net pay of P4.45 million. This included basic salary, allowances, bonuses and other incentives for 12 months. The ROSA showed that his basic salary for the year amounted to P2.102 million or roughly around P175,000 each month.

The 2022 ROSA, meanwhile, showed that Gierran had a net pay of P7.1 million in just six months in the same post (January to June 2022). His basic salary amounted to P3.531 million or more than P588,000 each month.

The ROSAs also showed that the senior vice presidents of PhilHealth likewise received higher basic salaries amounting to P380,000 per month in 2022 from just under P140,000 per month in 2021.