The Philippine Health Insurance Corp. has remained steadfast to correct its net operating loss of P4.7 billion, acting president and chief executive officer Dr. Roy Ferrer said Friday.
He also assured all its members and stakeholders that the agency was financially stable and well-managed.
With the sustained positive cash position of the agency, he said members would continuously enjoy more responsive benefits and unceasing benefit availment.
He said the 2017 financial statement had been validated “and we are confident that certain conditions were not taken into account such as unrecorded premium receivables from the formal sector that was at P49.1 billion but reported to be only at P48.7 billion and the over recording of the benefit claims expenses in 2017 from P105 billion to P102 billion.”
He also cited the reduction in 2017 Primary Care Benefit Accrual of P2.1 billion to P1.1 billion, the recording of 2017 benefit payout under the Point of Service program had yet to be refunded by the Department of Budget and Management.
This was initially recorded as benefit claim expenses that amounted to P926 million, and the unrecorded share of PhilHealth in the 2017 Bases Conversion Development Authority amounting to P25 million.
Despite the erroneous reports, PhilHealth guaranteed its 97-million beneficiaries of its undaunted commitment to work harder towards achieving stronger financial condition by improving collection efficiency, tighten anti-fraud activities, heighten member consciousness to pay their dues and implementing prudent spending proved to be very promising.
The PhilHealth chief announced an enormous increase in income at end July 2018, posting a net income of P10.66 billion, surpassing its performance last June by more than P3 billion.
In his speech during his first 100 days accomplishment report to more than 6,000 employees nationwide of the state run social health insurer, Ferrer said that the increase in net income was a result of the aggressive premium collection drive and the employee’s hard work and dedication.
“At the close of 2017, PhilHealth’s collection efficiency for the private sector was at 68 percent. To remedy this, we had to change the way we do business with our partner employers through intensified accounts management,” he said.
For the 1,600 large NCR accounts subjected to close monitoring by a group of PhilHealth’s Accounts Management Information Specialists or P-AIMS, he said collection efficiency jumped to 99 percent from 50 percent in three months.
PhilHealth posted over P72-billion income at end July 2018 from premiums alone.
Part of the figure came from the premium collections from the private sector which have seen a 38-percent increase or P7.44 billion compared to its June premium income last year.
The increase can be attributed to the adjustment in contribution rate from 2.5 percent to 2.75 percent effective January 2018 and the persistent efforts and strategies in accounts management.
On the other hand, PhilHealth registered total inflows of P95.07 billion in July, outweighing its outflows by P7.18 billion which has become the net inflows of state-run agency.
Ferrer noted that the enormous revenue influx puts PhilHealth’s cash on hand well over P40 billion as of July 2018.