Health Secretary Teodoro Herbosa has raised concerns about the “broken system” within the Philippine Health Insurance Corporation (PhilHealth), emphasizing that its funds are meant for health insurance, not for functioning like a pension fund.
Mismanagement of Funds
Herbosa, who also serves as PhilHealth’s board chairman, criticized the management’s approach, saying:
“PhilHealth management treated the funds like a pension fund. That’s why their emphasis has been to protect the fund and resist paying the health benefits of its members! We need to fix this broken system.”
The issue comes amid the removal of ₱74 billion in government subsidies for PhilHealth by Congress, citing the agency’s ₱600-billion reserve funds.
COA Report
The Commission on Audit (COA) reported that ₱89.90 billion in excess funds could have been used to enhance member benefits, underscoring PhilHealth’s inefficiencies in fund utilization.
Clarifying Insurance Roles
Herbosa explained the distinction between health insurance and pension funds, stating:
- Health insurance: Provides short-term financial protection for medical expenses.
- Pension insurance: Focuses on long-term savings and income replacement during retirement.
The health chief stressed the importance of aligning PhilHealth’s practices with its intended purpose of delivering timely and adequate health benefits to its members.
Awaiting PhilHealth Response
PhilHealth president and CEO Emmanuel Ledesma has yet to comment on Herbosa’s statement as of this report.