Chiz Escudero Highlights PhilHealth’s Idle Funds as Opportunity for Rate Cuts
CHIZ ESCUDERO – Senator Chiz Escudero said PhiloHealth can lower contribution rates with idle funds.
Senate President Francis Escudero has highlighted the substantial idle funds within PhilHealth, arguing that this financial surplus allows the agency to reduce its contribution rates. In a statement made on October 1, Escudero referenced data from the Department of Finance (DOF), revealing that PhilHealth currently holds approximately P500 billion in unutilized funds, which has accumulated over the years.
Escudero explained, “May mahigit kumulang P500 billion pa silang sobrang pera na pwedeng i-absorb kaugnay sa pagbabayad nga ng buwanang premium. Ang total subsidy ng pamahalaan para sa premium kada taon ay humigit kumulang P70 billion.”
Chiz Escudero detailed the yearly government subsidies allocated to PhilHealth, which have seen fluctuations over the past few years:
- 2021 – P71.3 billion
- 2022 – P80 billion
- 2023 – P79 million
- 2024 – P40.3 billion
The Senate President emphasized that these substantial reserves could be better allocated. He said, “Pero imbes na gawin ‘yon, isa sa mga istratehiya na pwede nilang pag-aralan ay ang gamitin na lang (ang reserve fund) para pababain ‘yung premium na karamihan naman ay gobyerno rin ang nagbabayad.”
His call for reevaluation of the fund’s usage comes at a time when PhilHealth’s financial management has been under scrutiny.
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According to the report, the topic of PhilHealth’s idle funds has sparked considerable debate this year, especially after the DOF mandated the return of **P89.9 billion** from PhilHealth’s reserves back to the national treasury. This directive has faced backlash from medical practitioners and various political figures, who argue that these funds should be utilized more effectively within the healthcare system. However, the DOF maintains that the 2024 General Appropriations Act legally permits the agency to reclaim these idle funds for reallocation to other pressing needs.
In conclusion, Escudero’s remarks shed light on the potential benefits of utilizing PhilHealth’s excess funds to alleviate the financial burden of monthly premiums, a significant expenditure primarily covered by the government. As discussions continue, the future of PhilHealth’s funding and premium rates remains a crucial issue in the ongoing efforts to enhance the nation’s healthcare system.