PHILHEALTH COUNTS ON SUBSIDY, RESERVE FUND TO COVER MEMBERS’ CLAIMS

Finance Secretary Carlos Dominguez III has assured the public that the national government’s subsidy to Philippine Health Insurance Corp. (PhilHealth) will allow it to disburse members’ medical expenses amid the pandemic and despite lower contributions.

Dominguez told reporters that on top of PhilHealth’s P164.1 billion in reserve funds as of June, the agency in-charge of implementing the national health insurance program also received P44.6 billion in subsidies in the first six months.

The P4.51-trillion 2021 national budget had set aside P71.4 billion in subsidy for PhilHealth—up from P62.4 billion last year, amid the prolonged fight against COVID-19. Since 2014, PhilHealth has been getting the biggest subsidy among all government-owned and/ or -controlled corporations Dominguez said PhilHealth posted a P25.5-billion deficit as of the end of the first half. “They are, at the moment, struggling with their own systems to pay their current debts.”

As the subsidy from the national government “amply” covered PhilHealth’s deficit, Dominguez said the agency was “still very viable on the cash-flow basis.”

However, Dominguez said PhilHealth posted a drop in contributions and an increase in expenditures due to COVID-19-related concerns.