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12 years of stagnant packages lead to buildup of PhilHealth idle funds

Jean Mangaluz - Philstar.com
12 years of stagnant packages lead to buildup of PhilHealth idle funds
Philippine Health Insurance Corp. 6 (Western Visayas).
pna.gov.ph / Photo courtesy of PhilHealth-6

MANILA, Philippines — More than a decade’s worth of stagnant health packages lead to the build-up of PhilHealth’s idle funds, according to the government corporation’s chief. 

The budget’s sponsor is typically the only one who may speak for an agency during the plenary. However, the rules were suspended with the consent of PhilHealth’s budget sponsor Sen. Pia Cayetano, allowing Sen. JV Ejercito to directly speak to PhilHealth President and CEO Emmanuel Ledesma. 

Ejercito questioned Ledesma over Philhealth’s exorbitant idle funds, saying that it could have been used for Philhealth beneficiaries, which under the Universal Healthcare (UHC) Act, means all Filipinos. 

“Prior to my appointment, it has been 12 years that the benefit packages of PhilHealth have been enhanced, so hindi po nagalaw with the inflation and everything, hindi po na adjust or na-ehnance yung benefit packages ng Philhealth,” Ledesma said on Tuesday evening, November 12. 

(Prior to my appointment, it has been 12 years since the benefit packages of PhilHealth have been enhanced, so it was not touched with inflation and everything, the packages of Philhealth were not adjusted or enhanced.)     

Ledesma said that he had only been working at his post for two years, but in the two years that he was working, the agency’s packages were upgraded. 

The COVID-19 pandemic also contributed to the buildup of funds. Ledesma said that people were often afraid to go to hospitals at the time. 

The premium contributions were also set, so PhilHealth kept collecting contributions even as its funds accumulated.  

Under the UHC, premium rates will increase in increments from 2019 to 2025, from 2.75% to 5.0%. 

PhilHealth’s idle funds have been subject to scrutiny after the Department of Finance ordered the return of PhilHealth’s P89.9 billion worth of idle funds back to the country’s coffers. 

After the issue came to light, PhilHealth was discovered to have accumulated P500 billion in idle funds.    

Ejercito questioned Ledesma over Philhealth’s low coverage of hospital bills, providing examples of hospital bills. Ledesma said he respected Ejercito’s opinion, but reiterated that state health insurance was aggressive in upgrading its packages. 

However, senators in the plenary were unhappy with Ledesma’s demeanor, asking him to respond to Ejercito’s questions respectfully. Ledesma apologized for his demeanor. 

JV EJERCITO

PHILHEALTH

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