Loren tells PhilHealth to improve premium collections

Senator Loren Legarda said yesterday that various government agencies, offices and units owe the Philippine Health Insurance Corp. (PhilHealth) a total of P8,965,697,377 in unpaid employers' contributions from 2001 to 2008.

"The report on PhilHealth's accounts receivable belies Malacanang's claim that government has no debts or arrears to Philhealth," said Loren, referring to a statement by Budget Secretary Rolando Andaya.

Government's arrears to PhilHealth was confirmed during a continuation of a public hearing called by Loren as chair of the Senate Committee on Health and Demography last Wednesday to look into a proposal for a universal health insurance coverage for the entire populace specially for the indigents and those belonging to the poor informal sector.

During the hearing, PhilHealth president Dr. Rey Aquino corrected and clarified the earlier testimonies of Philhealth's VP for Actuary and and maintained that PhilHealth's financial standing remains sound, with its funds totaling P91 billion, of which "P63 billion are available to pay any and all claims of every Philhealth member and his or her dependents."

PhilHealth officials had said they had not been remiss in reminding the Department of Budget and Management of the arrears for inclusion in the General Appropriations Act as PhilHealth regularly bills and requests funds for the purpose.

They said that Philhealth's strategies include having a strong lobby effort with DBM/DBCC so that payments to PhilHealth, including the arrears, may be included in the national budget passed by Congress; as well as forging a closer coordination with DBM to establish actual payments and to account for any defficiency as accounts receivables.

The P8.9 billion in government arrears to PhilHealth was broken down broadly as follows: National agencies, P6,100,344,916; uniformed personnel, P1,591,134,658; executive offices, P524,444,475; state universities and colleges, P458,988,892; the judiciary, P239,176,801; and legislative offices, P51,607,634.

Loren said that if PhilHealth is to continue serving its members in the years to come, its collection of premium payments must be improved by ensuring that the budget for Philhealth of all government offices and agencies is routinely included in the annual national budget proposal submitted by the executive department.