A PhilHealth overhaul amid fund mismanagement was proposed by Supreme Court Associate Justice Antonio Kho Jr., citing the need to replace the agency’s board due to its failure to comply with legal mandates regarding fund utilization.
Justice Kho made the statement during the third round of oral arguments on petitions questioning the constitutionality of PhilHealth’s fund transfer to the national treasury on Tuesday.
During the hearing, Kho scrutinized how PhilHealth formulated its budget request in the General Appropriations Act (GAA), which, by law, should be sourced from tax collections, including sin taxes and gaming revenues.
Department of Health (DOH) Spokesperson Assistant Secretary Albert Domingo admitted that PhilHealth computes its budget request based on the number of indirect members in its database rather than relying on the sin tax allocation.
As a result, Kho questioned whether PhilHealth was disregarding its legally designated funding sources. Domingo responded that PhilHealth prioritizes budgeting based on allocated funds rather than depending solely on projected government revenues.
Kho argued that PhilHealth’s self-imposed funding limits have hindered the state insurer’s ability to fully meet the healthcare needs of Filipinos.
Additionally, Justice Kho urged PhilHealth to request President Ferdinand R. Marcos Jr. to return the P60 billion in PhilHealth funds that were transferred to the national treasury as unprogrammed funds.
The justice emphasized that these funds should be used to expand PhilHealth benefits, improve services, and hire additional personnel to address the nation’s healthcare demands.
The next hearing is scheduled for April 29, when the Supreme Court is expected to decide on the fate of the controversial PhilHealth fund transfer.