PhilHealth posts R11.6-B cash flow at end-April net

The Philippine Health Insurance Corporation (PhilHealth) posted a net cash flow of P11.6 billion for the first four months of the year to further bolster its healthy financial position.

For the January-April 2018 period, the state health insurer recorded a cash inflow of P41.4 billion from which was deducted the agency’s expenditures totaling P29.8 billion, resulting in a net inflow of P11.6 billion as of end-April.

“These figures should make it very clear that PhilHealth is in excellent financial health, contrary to the claims of a few that it is losing,” Dr. Roy B. Ferrer, PhilHealth’s newly appointed acting president and CEO, said.

In a statement detailing its JanuaryApril 2018 financial performance, PhilHealth said the P41.4-billion cash inflow it received during the period came from premium contributions totaling P39.2 billion, up 104 percent from the P19.2 billion collected in the same period in 2017, as well as from an investment income at P2.2 billion, 10 percent higher than last year’s P2-billion income.

“The improved cash flow was made possible by the aggressive employer accounts monitoring and compliance in both the government and private sectors, the heightened consciousness among members to ensure regular payment of their contributions, and strategic investing,” Ferrer said. .

He also attributed the higher cash inflow to the early partial release of P14.9 billion worth of premiums of some 4.7 million senior citizens by the national government pursuant to the General Appropriations Act of 2018.

Meanwhile, the agency’s expenditures for January-April comprised of benefit payouts totaling P28 billion, and administrative expenses of P1.8 billion. The latter, Ferrer pointed out, was 22% lower than last year's P2.2 billion.“This is in keeping with our commitment to our members and stakeholders to be prudent in the management of their contributions,” he noted.

Benefit expenses refer to payments made to hospitals for services rendered to PhilHealth members and their dependents living in the country and even overseas.

“This is proof that we do not renege on our commitment to our partner hospitals when it comes to paying their claims already received by PhilHealth, including those that have already been 'incurred but not yet reported' (IBNR) to us,” the PhilHealth chief explained.

The IBNR is an estimate of claims that have not yet been filed by the hospitals for reimbursement. Through thismechanism, PhilHealth is able to anticipate prospective obligations based on actuarial approximation.