Leachon discloses that DOF demands return of estimated P90-B unused PhilHealth funds

Summary

The Department of Finance is set to transfer 89.9 billion pesos from PhilHealth's unused funds, causing concern among public health advocates. If the President doesn't intervene by the State of the Nation Address on July 22, the transfer could become permanent. Critics argue this move violates health laws, is immoral, and will worsen the healthcare crisis. The funds could improve the healthcare system, build facilities, and reduce medical costs. PhilHealth's Chief, Emmanuel Lba Jr, was noncommittal on the issue.

Takeaways

• ⏳ Time is running out for those opposing the transfer of 89.9 billion pesos from PhilHealth to the Department of Finance.
• 💰 These funds were unused in previous years and if transferred, it could leave PhilHealth without necessary funds.
• 🏥 This would negatively impact healthcare, causing suffering for people who need hospital care.
• 👨‍⚕️ Public health advocate Dr. Tonyon urges a decision before the State of the Nation Address (SONA) on July 22.
• 📅 If a decision isn’t made before the end of the fiscal year, the funds may be permanently lost.
• 📜 The Department of Finance circular DOF 003 2024 mandates that excess funds go back to the National Treasury for other programs.
• ⚖️ This action might violate the Universal Healthcare Law, Sin Tax Law, and Train Law, making it potentially unconstitutional, illegal, and immoral.
• 💸 Despite the unused funds, PhilHealth members' contributions are increasing, while patient discounts for conditions like heart disease and cancer remain unchanged.
• 🛑 The public health advocate fears that if the funds are transferred, it could set a damaging precedent for future health funding.
• 🏥 The unused funds could improve the healthcare system, build hospitals, raise healthcare worker salaries, and strengthen PhilHealth.

Q & A

What is the Department of Finance planning to do with the 89.9 billion pesos success funds?

The Department of Finance is planning to transfer the 89.9 billion pesos of unused funds from PhilHealth to the National Treasury.

Why are some people opposed to the transfer of these funds?

Opponents, including public health reform advocates, argue that transferring the funds would deprive the health sector of essential resources needed for healthcare services and that it could violate several laws, such as the Universal Health Care Law.

What potential consequence did Dr. Tony Leon highlight if the funds are transferred?

Dr. Tony Leon stated that if the funds are transferred, many people will suffer due to a lack of funding for health services, particularly when they are hospitalized.

What does the DOF Circular 003 2024 mandate regarding excess funds?

DOF Circular 003 2024 mandates that excess funds from government agencies, such as PhilHealth, be returned to the National Treasury.

How does this transfer potentially violate laws according to Dr. Leon?

Dr. Leon suggests that the transfer might violate the Universal Health Care Law, the Sin Tax Law, and the TRAIN Law, as these laws specify that health funds should be allocated only for healthcare purposes.

Despite the excess funds, why are PhilHealth contributions still increasing?

PhilHealth members' premium contributions have increased to 5%, despite the surplus funds, and prices for medicines are also rising. However, the benefits for patients, such as discounts for serious conditions like heart disease and cancer, have not increased.

What could be done with the unused funds instead of transferring them?

Dr. Leon argues that the unused funds could be used to improve the healthcare system, such as building hospitals, increasing the salaries of healthcare workers, and strengthening the PhilHealth system.

What concern does Dr. Leon have about the long-term effects of the transfer?

Dr. Leon fears that transferring the funds will set a precedent, making it harder to correct the error in the future and potentially causing lasting harm to the healthcare system.

What is the role of the President in this situation?

The final decision on whether to transfer the funds lies with the President. Public health advocates are urging the President to act before the upcoming State of the Nation Address (SONA) to prevent the transfer.

What improvements could the healthcare system achieve with the proper use of the funds?

If the funds were used effectively, the healthcare system could be strengthened to provide better infrastructure, increased healthcare worker salaries, and reduce patient costs under the Universal Health Care scheme.