EDITORIAL - Reforming PhilHealth

After President Duterte sent word, through a Cabinet member, that it would be “best” for Ricardo Morales to focus on his personal battle with cancer, the former military officer finally tendered his resignation as president and chief executive officer of the scandal-plagued Philippine Health Insurance Corp.

PhilHealth officials, including several from the previous administration, are facing serious accusations involving fund misuse. Allegations of wrongdoing in the state health insurer have in fact been hurled since the Aquino administration.

The purported anomalies have persisted for such a long time that there was some confusion after the Senate Blue Ribbon committee released its chairman’s report on corruption scandals – not the most recent cases, but involving issues in the previous administration. The Presidential Anti-Corruption Commission, for its part, has also finished its probe on previous cases, and is just starting to include the latest allegations of wrongdoing.

Because of the nature of PhilHealth’s mandate, most of the alleged anomalies are being raised in connection with the payment of claims or reimbursements. But there are also accusations of overpricing in supply procurements as well as payments for “ghost” or non-existent products and services.

Morales was appointed to the PhilHealth post last year amid the accusations, and was expected to introduce reforms. The circumstances surrounding his resignation indicate how challenging the task is, with a resigned PhilHealth official saying that a syndicate or “mafia” has become entrenched in the state insurer.

Senators have stressed that Morales’ resignation would not spare him from the continuing probes by both chambers of Congress, with the Office of the Ombudsman also conducting its own investigation. Malacañang has also clarified that the resignation does not absolve Morales of culpability, if wrongdoing is established.

Unless punishment is imposed on those who misuse or steal public funds, there will be no end to graft not only in PhilHealth but in all government offices. Alongside the ongoing probes, structural reforms are urgently needed to plug opportunities for corruption in the agency. The resignation of several top PhilHealth officials as well as the voluntary leaves of others should pave the way for these long-overdue reforms.