Is PhilHealth about to close down?

MANILA, Philippines- A report by revealed that PhilHealth, the national health insurance program of the Philippines, is on the verge of closing down.

Board member Eddie Dorotan claims that PhilHealth is dying.
During the inauguration of PhilHealth’s Local Health Insurance Office (LHIO) situated at Pacific Mall-Gaisano complex in Legazpi City on Tuesday, March 8, board member Eddie Dorotan revealed that the company might only have 10 months to live since its funds payout is higher than its income and members’ monthly contribution.

Dorotan disclosed that PhilHealth lost almost P1 billion last year because its P96 billion earnings wasn’t enough to cover for the payments of benefits to claimants amounting to P97 billion. Despite its financial problems, the company managed to serve the poor through the universal health care program.

Shortly after the news circulated, PhilHealth released a statement refuting Dorotan’s revelation.

In the Official Gazette website, the agency’s president and CEO Alexander Padilla claimed that PhilHealth is stable. Stating that “PhilHealth’s finances are as robust, healthy and substantial as ever,” Padilla said that there is no reason for stakeholders and members to worry about the company’s capacity to fulfill their obligations.

“Proof of this is our ability to pay for the benefit claims of our members at an amount that has been steadily growing over the last five years. In 2011, we paid about P34B; about P44B in 2012; up to P55B in 2013, P77B in 2014 and about P97B in 2015,” Padilla explained.

Padilla also admitted that PhilHealth paid P1 billion in excess of what they collected in premium contributions in 2015. However, he pointed out that the company gained P7 billion from investment income.

Furthermore, Padilla stressed that PhilHealth’s reserve funds have been growing steadily, from roughly P112 billion in 2012 to P128 billion in 2015. -Mini/The Summit Express

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