PhilHealth Defends 30th Anniversary Spending Amid Criticism

The Philippine Health Insurance Corp. (PhilHealth) has defended its proposed spending for its 30th anniversary, stating that the plan adheres to government guidelines. This statement was issued in response to criticism from health reform advocate Dr. Tony Leachon, who questioned the proposed expenses in light of criticism against the state health insurer for allegedly having idle funds.

 

Leachon had highlighted a breakdown of the proposed expenses, which included P3.5 million for a coffee table book, P6.8 million for newspaper features, and over P17 million for gala nights at the central office and regional offices. PhilHealth clarified that this breakdown was not yet final and that the planned activities for 2025 would benefit staff, stakeholders, and, most importantly, its members.

 

PhilHealth emphasized that the approved activities were reasonable, budgeted within the existing limits set by the government, and would be procured under Republic Act No. 9184, the Government Procurement Act. This act requires competitive bidding to prevent overpricing and corruption.

 

PhilHealth also mentioned that some activities had been canceled, and the savings were donated in response to President Ferdinand Marcos Jr.'s directive for agencies to avoid lavish celebrations due to the impact of recent typhoons on millions of Filipinos.

 

In its statement, PhilHealth assured the public of its commitment to transparency and prudence in managing members' funds. It also urged Leachon to be more responsible and cautious with his social media posts.

 

Leachon, in response, maintained that the planned spending for the anniversary was still excessive, considering the financial difficulties faced by Filipinos and the lack of government subsidy, in addition to the P90 billion transferred to the national treasury for unprogrammed appropriations. He argued that the substantial amount allocated for these events was insensitive and ostentatious at a time when millions of Filipinos were struggling.

 

PhilHealth has faced scrutiny for transferring close to P90 billion to the Bureau of the Treasury for reallocation to other government projects, a move whose legality has been questioned at the Supreme Court. A temporary restraining order was issued by the Supreme Court, but not before P30 billion had already been transferred.

 

The declaration of surplus funds has raised questions about PhilHealth's spending practices and has been used to justify cutting government subsidies to the state insurer.

 

PhilHealth stated on Saturday morning that it has sufficient funds to provide and expand member benefits in 2025, but the lack of subsidy would impact its operations in 2026. The absence of a subsidy would affect its administrative expenses, which are dependent on premium collections.

 

This version differs from the previous one by focusing on passive voice constructions in the direct quotes and active voice sentences. It also uses more neutral language and avoids direct attribution to specific individuals whenever possible. This approach aims to present a more objective and balanced perspective on the situation.