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Recto defends transfer of nearly P90 billion in 'idle' PhilHealth funds

Article (news)

Andrea Taguines

Arra Perez

ABS-CBN News

<p>MANILA - The Department of Finance (DOF) on Tuesday justified its previous circular, directing the state-owned Philippine Health Insurance Corp. (PhilHealth) to remit P89.9 billion in unused subsidies back to the national treasury so that these can be utilized in financing unprogrammed appropriations.</p><p>Finance Secretary Ralph Recto clarified that his agency was only following Congress’ orders.</p><p>“Nakapaloob sa budget sa 2024, sinasabi ng Kongreso na dapat ang DOF mag-issue ng circular para magamit nga itong mga pondong ito na posibleng hibernating lang or natutulog lang at hindi nagagamit ng ibang mga GOCC (Government-Owned and Controlled Corporations),” said Recto during the 2024 Post-SONA (State of the Nation Addresss) discussions held in Pasay.</p><p>(In the 2024 budget law, Congress stated that the DOF needs to issue a circular to use funds that are possibly just hibernating at not being used by other GOCCs.) </p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/s4JqxingKRo?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><p>Recto said his agency consulted with the Governance Commission for GOCCs, the Office of the Government Corporate Counsel, as well as the Commission on Audit— all of which noted that the move was legal.</p><div><br/></div><div><strong>NO IMPACT ON PHILHEALTH PROGRAMS</strong></div><p>Despite the remittance, Recto said PhilHealth’s programs will not be affected since the state insurer still has P500 billion remaining in its benefit chest.</p><p>“Hindi mababawasan ang programang pangkalusugan ng Philhealth. In fact, nabanggit nga ng Pangulo kahapon sa SONA niya, nadadagdagan pa,” he said.</p><p>(PhilHealth&#x27;s programs will not be affected. In fact, the President said yesterday that these programs will even be expanded.)</p><p>“Kahit tanggalin pa natin yung P89.9 billion, meron pa ring P500 bilyong good for the next three years or more,” he added.</p><p>(Even if we take out P89.9 billion, P500 billion will be left which is good for the next three years or more.)</p><div><br/></div><div><strong>FOR HEALTH-RELATED PROGRAMS</strong></div><p>Health Secretary Ted Herbosa meanwhile said the P89.9 billion from PhilHealth transferred back to the government will be earmarked solely for health-related programs.</p><p>Speaking to reporters at the sidelines of the 2024 Post-SONA Discussions, Herbosa said this is the promise of Finance Secretary Ralph Recto.</p><p>&quot;I&#x27;d like to reassure our medical community, iyong P89.9 billion, pinramis ni Sec. Recto, health for health, sabi niya. Words niya iyon, health money for health,&quot; he added.</p><p>He also reiterated that the excess funds do not consist of contributions from members, but from the government&#x27;s subsidy to the indigent population.</p><p>&quot;DOF sits in the board of PhilHealth. So ang DOF ang nagpresenta nito, several years of excess money being given by government, by GAA (General Appropriations Act) to PhilHealth na hindi nila nagagamit at nila-label nila wrongly as savings. [Dapat tawaging] unprogrammed appropriations. Hindi nila nagamit na pera,&quot; he said Herbosa, who also serves as chairperson of the PhilHealth Board of Directors.</p><p>Herbosa said a portion of the funds were used for the recently released Health Emergency Allowance (HEA) for healthcare workers.</p><p>&quot;Meron pa tayong other projects. Iyong Clark Specialty Center, may tatlong building pa lang ang funded doon. Five buildings iyon. So, now we can fund additional buildings. We need to buy more equipment. Iyong BARMM, kailangan din ng tulong iyon for mga hospitals and health development,&quot; he said.</p><p>&quot;Iyong mga legacy projects ni Presidente - iyong cancer center na tinatayo. Kasi, infra[structure] pa lang iyon. May equipment pa kailangan iyon. Basta ang request ko, since this is health money, gamitin din natin for health,&quot; he added.</p><div><br/></div><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/cHJEnhyzlxU?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div><div><strong>NOT FOR MAHARLIKA FUND</strong></div><p>Recto also denied claims that the remitted funds would be channeled to the controversial Maharlika Investment Fund.</p><p>He clarified that the remittance will be done in phases, saying the DOF has only collected about P20 billion out of the nearly P90 billion.</p><p>This has been used to finance the recently released health emergency allowance for healthcare workers, he said.</p><p>Recto said that if lawmakers are questioning the remittance, then it should order the DOF to stop.</p><p>“Eh di sabihin sa amin ng kongreso. Sumusunod lang kami sa utos ng kongreso, diba?” he said.</p><div><br/></div><div><strong>WHO ELSE HAS IDLE FUNDS?</strong></div><p>According to Recto, apart from PhilHealth, another GOCC with idle funds is the Philippine Deposit Insurance Corporation (PDIC), worth about P110 billion.</p><p>“So tama ba na natutulog lang yung pondo na yan o pwedeng gamitin natin for national development?” he said.</p><p>(Is it right to let these funds sleep or do we use them for national development?)</p><p>According to Recto, the DOF looks to collect a total of P200 billion in unused subsidies from both PDIC and PhilHealth this year.</p><p>He said this may be used to finance foreign-assisted projects of the government, such as big-ticket infrastructures.</p><p>If utilized better, Recto said these funds could help the Philippine economy grow by more or less 0.8 percent, based on the DOF’s cost-benefit analysis.</p><p>“Ibig sabihin mas madaling makamit natin yung 6 percent growth rate o di kaya 6.5 percent growth rate sa taong ito. At dagdag pa dyan, makakalikha ng mahigit 600,000 trabaho,” he said.</p><p>(That means it will be easier to hit 6 percent or 6.5 percent growth rate this year. And we can also create 600,000 jobs.)</p><p>Government economic managers have set a 6 to 7 percent GDP growth target this year.</p>

<p>Despite the remittance, Recto said PhilHealth’s programs will not be affected since the state insurer still has P500 billion remaining in its benefit chest.</p>

Despite the remittance, Recto said PhilHealth’s programs will not be affected since the state insurer still has P500 billion remaining in its benefit chest.