The Philippine Health Insurance Corporation (PhilHealth) needs a shot in the arm as it might have its last breath after 10 months since it is fast losing blood with its fund payout larger than its members’ monthly contributions and income.
This was disclosed by PhilHealth board member Eddie Dorotan, who was the guest of honor during the inauguration of the company’s local health insurance office at the Pacific Mall-Gaisano complex in Legazpi city on Tuesday.
Dorotan said PhilHealth lost almost P1 billion last year since their payments of benefits to claimants reached P97 billion while it only earned P96 billion.
The earnings came from PhilHealth’s share from the sin tax, members’ contributions and yields from its investments.
Premium payments to senior citizens and beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps) touched the P10-billion mark.
In the past two to three years, the company spent a large chunk of its financial pie for the enrollment of five million indigent Filipinos.
The company should have a two-year reserve fund of at least P100 billion to continue servicing the public and be reimbursed by the national government, according to the Department of Budget and Management.
The former mayor of Irosin, Sorsogon said PhilHealth benefits a lot from the sin tax from which it got 20 percent of the P30 billion collection of the national government from the revenue-generating tax.
Dorotan said as a remedial measure to prevent PhilHealth’s financial collapse, it is intensifying its collection efforts from its members in the private and government offices.
From the government sector members alone, the company has collectibles of billions of pesos.
Dorotan said PhilHealth earned P5 billion in the form of interests from its investments.
The Philippine Health Insurance Corporation was created in 1995 as a universal health coverage for the Philippines. It is a tax-exempt, government-owned and controlled corporation (GOCC) of the Philippines attached to the Department of Health. Its goal is insuring a sustainable national health insurance program for all.
In the 2008 National Demographic Health Survey, only 38 percent of respondents were aware of at least one household member being enrolled in PhilHealth. (With report from PNA)