PhilHealth Urged to Temporarily Halt Collection of Contributions amid Financial Success
In a recent budget deliberation conducted by the Department of Health (DOH), the Philippine Health Insurance Corporation (PhilHealth) was requested to suspend the collection of contributions from its members. This proposal came after PhilHealth revealed its impressive financial status to the House Committee on Appropriations.
Marikina City 2nd district Representative and senior vice chairperson of the appropriations panel, Stella Quimbo, put forward the idea during the hearing. Having observed the substantial profits of PhilHealth, Quimbo suggested that the organization should temporarily suspend the collection of premiums from workers until they can demonstrate effective spending of their funds.
During the hearing, it was revealed that PhilHealth generated a staggering P100 billion in revenue last year. This includes P68 billion from members’ premiums, P22 billion from government subsidies for select beneficiaries, and P12.2 billion from investments. As of July 31, PhilHealth reported net income of around P68.4 billion and investible funds amounting to P466 billion. The organization also claimed to have a reserve fund of P336 billion.
Quimbo, an economist herself, acknowledged that she was aware of PhilHealth’s financial success and wanted to highlight it to PhilHealth President and CEO Emmanuel Ledesma Jr. She inquired about other sources of income that may not have been accounted for, but ultimately acknowledged the organization’s profitability.
In response to Quimbo’s proposal, Ledesma stated that PhilHealth is currently unable to alter the contribution system. He explained that once the reserve fund reaches P470 billion, according to actuarial calculations, they can consider either reducing contributions or increasing benefit packages.
Quimbo challenged Ledesma, emphasizing that PhilHealth has been promising better benefit packages since its establishment in 1995, yet no significant improvements have been made to date. She urged Ledesma to consider her proposal and requested a written response.
Additionally, it was revealed during the meeting that PhilHealth officials received substantial salary increases in 2022.
The fate of Quimbo’s suggestion to temporarily halt contributions remains uncertain, as PhilHealth evaluates its financial position and assesses the feasibility of suspending the collection of premiums from its members.
