If the transfer of the idle funds of the Philippine Health Insurance Corporation (PhilHealth) to the Bureau of Treasury is allowed to proceed, it will serve as a “strong signal” for the state health insurer to improve its services and maximize the benefits available to its members.
This according to Department of Health (DOH) Assistant Secretary Dr. Albert Francis Domingo, who, in response to questions from Associate Justice Antonio Kho Jr. on whether the government should return the ₱60 billion transferred from PhilHealth, explained that the transfer has signaled to PhilHealth the need to enhance its benefit packages.
“Your Honor, if it pleases the court, Section 58, the sovereign guarantee, even without this maneuver of the ₱89.9 [billion], government can and always will increase the benefits. But the signal, Your Honor, if it pleases the court, that this litigation gave is a strong signal for it to do so,” said Domingo.
The DOH official emphasized that the move compels PhilHealth to utilize its funds efficiently rather than allowing them to remain idle.
According to Domingo, “this is the start, Your Honor. If the case is allowed to proceed, if the transfer is allowed to proceed, it is a use-it or lose-it signal, which all national government agencies have, so that we will use our funds. GOCCs like PhilHealth do not have that signal.”
Domingo pointed out that, prior to the current leadership of PhilHealth, there had been a perception within the agency that earmarked funds would always be available, regardless of how efficiently they were utilized.
“And they think, at least before the current CEO or the current administration, they think that just because there is an earmark, whether hard or soft, that they will get the money and there is no stimulus for them to actually increase the benefits,” he said.
“That’s why it should be increased. And mathematically, the only way to do this is to increase the benefit packages, which we are doing now.”
Despite the transfer of its unutilized funds, PhilHealth has expanded its benefit offerings over the past year. Patients undergoing hemodialysis now have coverage for up to 156 sessions per year, up from 90. Mental health services have been expanded to include consultations and inpatient care. Financial support for critical illnesses, including cancer and kidney transplants, has been increased, while new outpatient packages now cover primary care, laboratory tests, and preventive healthcare services.
Additionally, PhilHealth has enhanced its Z-benefit packages, ensuring better financial protection for those suffering from catastrophic illnesses such as heart disease and stroke. It recently announced a new package for heart valve repair and replacement, with coverage up to ₱1 million.
