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SC to cut PhilHealth premiums
By J.Lo
“It’s illegal because what they are doing with this provision is to essentially amend all charters, all these laws created GOCCs,” former finance undersecretary Cielo Magno said advocates are expected to mount legal challenge to government’s move to transfer excess funds from Philippine Health Insurance Corp. (PhilHealth) and other government-owned and controlled corporations (GOCCs) to finance unprogrammed appropriations in this year’s budget.
Magno said they would file case before Supreme Court (SC) to question legality of provision in 2024 General Appropriations Act (GAA).
Provision Magno said was inserted by bicameral conference committee, allowed use of fund balance from GOCCs to finance “unprogrammed appropriations” or government projects without budget allocation.
Magno, economics professor at University of the Philippines, said inserted provision in budget law may be considered “rider provision” that is inconsistent with subject matter of legislation.
“It is clear in the charter of PhilHealth and in Universal Healthcare Law that if PhilHealth has reserve funds, you can only use it for two things: either you increase scope of service or benefits provided to the people or you reduce premium of members,” she stressed.
Excess funds of PhilHealth worth P89.9 billion were diverted to fund unprogrammed appropriations this year, which led health advocates and budget watchdogs to call for probe into Department of Finance’s action.
Federation of Free Workers (FFW) echoed Magno’s sentiment as it called for state health insurer to reduce workers’ contributions.
“Meager take-home pay of workers should not be deducted…it is justified for these salary deductions to be reduced,” FFW president Sonny Matula said.
PhilHealth members’ premium contributions increased to five percent from four percent this year.
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