Solon to push probe into PhilHealth reserve funds
The PhilHealth Local Health Insurance Office (LHIO) Caloocan —Photo from the PhilHealth website
MANILA, Philippines — Ako Bicol Party-list Rep. Raul Angelo Bongalon, the House appropriations committee vice chair, plans to file a resolution calling for a congressional probe into the reserve funds of the Philippine Health Insurance Corp (PhilHealth).
The probe would center on how PhilHealth managed its reserves of over P700 billion and P500 billion in investible funds, Bongalon said in a statement on Sunday.
“At just a conservative four percent annual interest, P500 billion could yield P20 billion in income. How much does PhilHealth really make from its investments? Where do they place the funds, and who decides where it’s invested? Most importantly, what’s the criteria for these investments?” Bongalon said.
He added that PhilHealth had “failed to utilize allocated funds to expand medical benefits,” which led to the decision to cut the state insurer’s subsidy for 2025.
On Wednesday, Sen. Grace Poe, the committee on finance chair, confirmed that Congress had decided to defund PhilHealth’s premium subsidies for 2025.
Article continues after this advertisementThis move has led various groups and critics to voice their disapproval of the decision, with some calling it an “insult” to the state insurer’s members.
Article continues after this advertisementIn response to critics, Bongalon stated the decision to withhold P74 billion in premium subsidies would not deprive Filipinos of health insurance benefits, as PhilHealth still had sufficient funds to meet its obligations.
He revealed in previous hearings that P42 billion in Special Allotment Release Orders allocated for benefit expansion, including the Konsulta Package had remained unused.
“Despite PhilHealth’s excess funds, hospitals are complaining that the state insurer often fails to pay them on time. Worse, there are reports that some are even forced to pay bribes just to be able to collect,” Bongalon said.
Under the Universal Health Care Act, PhilHealth is required to use excess funds to either expand benefits or reduce premiums, he pointed out.
“However, the state insurer has done neither, prompting Congress to withhold additional subsidies,” he said.
