PhilHealth to comply with SC ruling on P89.9-B funds

STATE-RUN Philippine Health Insurance Corp. (PhilHealth) on Thursday reaffirmed its commitment to comply with whatever the Supreme Court’s (SC) decision will be on the controversial P89.9 billion fund transfer to the national government, as it awaits resolution of the case.

“There has been no official communication yet,” PhilHealth President and Chief Executive Officer Edwin M. Mercado said in Filipino during a Palace briefing. “But we, along with the Department of Health (DoH), will fully abide by whatever ruling our honorable justices hand down.”

The case involves the legality of transferring PhilHealth’s reserve funds to national coffers, a move that has drawn scrutiny over its potential impact on the country’s public health situation.

Mr. Mercado emphasized that the proceedings were conducted fairly and that all sides were given a due opportunity to present their case.

“This is because, whatever process [the case has gone through], it was fair and all sides were heard,” he added.

Last year, the high court issued a temporary restraining order, halting the transfer of P29.9 billion from PhilHealth to the national government after the initial transfer of P60 billion.

Earlier this year, the tribunal conducted oral arguments on the case, where both PhilHealth and the DoH asserted that the funds were intended for initiatives that ultimately benefited PhilHealth members.

Justices of the top court, however, raised questions on accountability, fund ownership, and the extent of PhilHealth’s fiduciary discretion.

The case is still pending resolution.

Meanwhile, the agency expects to post a negative net income this year as it ramps up spending from its accumulated surplus to expand healthcare benefits.

“For this year, we expect a negative net income,” Mr. Mercado said in Filipino. “We’re now tapping into our surplus fund, which is the right thing to do for a social health insurance institution. The money shouldn’t just be saved — it should be spent on member benefits.”

He noted that President Ferdinand R. Marcos, Jr., has directed the agency to increase utilization of funds in line with global best practices, which recommend that 85% to 90% of contributions and subsidies be spent directly on healthcare services.

“In some countries, social health insurers aren’t even allowed to maintain reserve funds. The mandate is to spend it for the people’s health.” — Chloe Mari A. Hufana