Recto opposes cut in PhilHealth contributions

MANILA, Philippines — Finance Secretary Ralph Recto has opposed a measure to cut the Philippine Health Insurance Corp. (PhilHealth) contributions and suggested improving the benefit packages from the state health insurer instead.

Recto’s response came after PhilHealth president and CEO Emmanuel Ledesma Jr. said he would convene his team and recommend a reduction in the premium and contribution rates to President Marcos.

PhilHealth and Recto have been in hot water after the latter ordered the return of the agency’s P89.9 billion in unused funds to finance projects under the unprogrammed appropriations.

“I would prefer to improve benefit packages to all members to reduce out-of-pocket costs,” Recto said in a Viber message to The STAR.

However, Recto admitted that ramping up benefit packages might take time to ensure there is no wastage and insurance fraud.

“DOH (Department of Health) and PhilHealth should review the 9,000 case rate (packages) and maybe simplify (them),” Recto said.

While Recto does not want to cut rates, he maintained that the decision is still up to PhilHealth.

Lawmakers have been questioning PhilHealth for being awash in cash and yet Filipinos are forced to pay high premiums for health insurance.

Sen. Bong Go previously asked the state health insurer to suspend the implementation of its five percent increase in its premium contributions.

He would recommend a reduction of their premiums to President Marcos after securing a commitment from Ledesma.

“Mabigat po ‘yung kontribusyon na iyan tapos makikita (ng members) may natitira pang balanse ang PhilHealth,” Go noted.

Recto said PhilHealth is already more than sufficiently funded with a P500-billion benefit chest fund to pay for its members’ multi-year claims.

The agency will also continue to receive subsidies from the government and is expected to increase its benefit packages next year.

Labor coalition Nagkaisa sought the cancellation of the order transferring the P89.9 billion in PhilHealth funds to the national government.

Saying there was no legal justification for the transfer, the coalition urged the President to rescind the Department of Finance circular directing the “siphoning” of the fund to the National Treasury.

It also demanded the return of the P20 billion already transferred to the national government last May.

Meanwhile, senior administration lawmakers lauded PhilHealth’s planned recommendation to reduce the rate of premium contributions by its members, saying funds can now be diverted for other equally important projects.

“That’s welcome news for all of us because with reduced contributions, then PhilHealth can most probably give us additional services and benefits,” Rep. Robert Ace Barbers, chairman of the House committee on dangerous drugs, told reporters.

“It simply means we will be spending less and getting more,” House Deputy Speaker David Suarez of Quezon Province’s second district said as he lauded PhilHealth’s proposal.

Rep. Joey Salceda, chairman of the House ways and means committee, said it would be better if PhilHealth increases the benefits for Filipinos who will avail themselves of the health care package as the state health insurer has around P500 billion in excess funds.

He estimated that PhilHealth needs around P1.8 trillion to fully finance the catastrophic health care needs especially for senior citizens, in which the excess funds can finance around 10 percent of health care needs.

In a statement, Salceda said he would “request that PhilHealth submit a plan to spend its excess funds on better packages and accelerate paying its overdue payables.” – Mayen Jaymalin, Sheila Crisostomo, Delon Porcalla