“There is a clear gap between available resources and the actual healthcare needs of the Filipino people”
As taxpayers and consumers, we have a right to know how the government uses our hard-earned money, especially as the cost of living continues to rise.
We pay taxes, trusting that these funds will be used to improve public services, particularly healthcare. But recent news about PhilHealth’s idle funds raises serious concerns about how well our public resources are being managed.
Finance Secretary Ralph Recto assured the public that using PhilHealth’s unspent funds would not disrupt the agency’s ability to expand its benefit packages or interfere with its daily operations.
It’s reassuring to know that, despite reallocating these unused funds, PhilHealth will continue fulfilling its mission of providing healthcare to millions of Filipinos.
However, this situation underscores the need for better resource management and reforms to ensure government funds are utilized effectively.
PhilHealth is expected to end the year with a net income of P 61.18 billion.
This is a significant increase from its P 4.66 billion net income in 2019, with profits soaring to P 173.46 billion in 2023.
Moreover, the government is set to inject an additional P 70 billion into PhilHealth next year to further expand its benefit packages.
With these financial resources in place, it’s clear PhilHealth isn’t short on funds.
Secretary Recto even highlighted that, even if P 89.9 billion in unused subsidies were transferred to the national treasury, PhilHealth would still have over P 550 billion in reserves, enough to cover its expenses for the next two to three years while also increasing benefits.
This situation begs the question: Why is there so much idle money in a system that is supposed to provide universal healthcare for Filipinos?
The government’s decision to reallocate these unused funds is a necessary move to support crucial projects in critical infrastructure, healthcare, education, agriculture, and social services—areas that directly impact the well-being of Filipinos.
For example, an initial P 20 billion from PhilHealth’s idle funds was used to provide P 27.5 billion in emergency allowances for health workers, a cause worthy of every peso.
The rest of the funds will go toward important national projects like nutrition programs and infrastructure development.
This reallocation of resources also eliminates the need for new taxes which will burden all consumers and business enterprises.
But the core issue isn’t just about reallocating unused funds; it’s about building the capacity and efficiency of the whole public health system to optimize these billions of funds to deliver the programs mandated under the Universal Healthcare Act.
To maximize the use of healthcare funds, what we need are urgent reforms that would harmonize the assets of public and private health institutions, the pharmaceutical industry, and healthcare professionals to ensure that its resources are used effectively.
The solution to PhilHealth’s underutilized funds isn’t to cut back on healthcare funding, but to push for urgent and transformative reforms that would prioritize expanding and efficiently dispatching the benefit packages, so more Filipinos can access the quality, comprehensive healthcare they deserve.
By eliminating inefficiencies and modernizing its systems, PhilHealth will unlock the full potential of its financial resources and serve its members more effectively.
PhilHealth is working on another 30 percent increase in benefit packages, as announced by President and CEO Emmanuel Ledesma Jr. during the House Committee on Appropriations hearing.
This follows a similar 30 percent hike in Feb. 2024 aimed at reducing out-of-pocket medical costs for Filipinos.
Health Secretary Ted Herbosa also committed to enhancing PhilHealth benefits by adding new medical procedures, further expanding healthcare access and easing financial burdens on patients.
According to the DOF’s analysis, reallocating these idle resources will boost the country’s gross domestic product by 0.7 percent, generate P 23 billion to P 24.4 billion in revenue, and create thousands of jobs.
These are real, tangible benefits that will directly improve the lives of Filipinos.
While reallocating funds is a step in the right direction, it’s equally important to ensure this process is transparent and accountable.
Every peso of taxpayer money should be used responsibly, and the public deserves to know how and where these funds are being spent.
The fact that PhilHealth and other GOCCs have idle funds in the first place points to inefficiencies that must be addressed.
There is a clear gap between available resources and the actual healthcare needs of the Filipino people.
Closing this gap requires good governance, stronger oversight, and a more efficient and digitally transformed public health system.
