Supreme Court Associate Justice Antonio Kho Jr. on Tuesday suggested that it may be time to overhaul the Philippine Health Insurance Corporation (PhilHealth) and replace its board due to alleged failure to comply with legal funding requirements for its budget.
Kho made the statement during oral arguments on the controversial transfer of P89.9 billion in PhilHealth excess reserve funds to the national treasury.
“It’s Time to Overhaul PhilHealth”
“Maybe it’s time to overhaul PhilHealth and change the board for failing to follow what the law requires,” Kho told Department of Health (DOH) spokesperson Albert Domingo during the hearing.
He pointed out that it is not the people’s fault if they are unable to fully avail of PhilHealth benefits, but rather the failure of past and present administrations and the PhilHealth board itself.
Legal Concerns Over PhilHealth’s Budgeting Process
Kho also raised concerns about how PhilHealth determines its budget request under the General Appropriations Act (GAA). According to the Universal Health Care Act, PhilHealth’s funds should come from:
- Sin tax collections
- 50% of the national government’s share of the Philippine Amusement and Gaming Corporation’s (PAGCOR) income
- 40% of the Philippine Charity Sweepstakes Office (PCSO) charity fund
- Member premium contributions
- DOH’s annual appropriations in the GAA
- Government subsidies included in the GAA
However, Domingo admitted that the DOH follows a different formula, basing PhilHealth’s budget request on the number of indirect members multiplied by the corporation’s premium rate, rather than strictly adhering to the law’s prescribed funding sources.
This led Kho to question whether PhilHealth was disregarding its legal funding sources, to which Domingo responded that PhilHealth prioritizes a needs-based allocation instead of relying solely on projected government revenues.
Kho: PhilHealth’s Self-Imposed Limits Hurt Public Healthcare
Kho criticized PhilHealth’s self-imposed funding restrictions, arguing that they prevent the agency from fully addressing the healthcare needs of Filipinos.
“The problem is that PhilHealth limits its own funding, so it doesn’t fully address the health needs of the Filipino people. If you increase the budget by 200%, I don’t think Filipinos would not avail of that,” he said.
He further questioned why PhilHealth was creating its own funding formula when Congress allocates tax revenues specifically to subsidize PhilHealth for indirect contributors.
“Does that mean you will disregard that? You will make your own formula because you have a limited understanding of our people’s healthcare needs?” he asked.
Government Must Return P60 Billion to PhilHealth
Domingo acknowledged that the Marcos administration agrees with Kho’s assessment, calling it a “strong signal” for PhilHealth to increase its benefits for members.
In response, Kho said that the government must also return the P60 billion that PhilHealth previously remitted to the National Treasury, as its own officials now recognize the need for more funding.
“As long as the government recognizes this, it is now incumbent upon them to return the P60 billion that was transmitted already,” he stated.
He suggested that PhilHealth should formally request President Ferdinand Marcos Jr. to return the funds so it can expand its benefits and hire more healthcare workers to meet the needs of Filipinos.