THE House Committee on Appropriations on Monday continued its scrutiny of the Department of Health (DOH) and Philippine Health Insurance Corporation’s (PhilHealth) budgetary performance, focusing on pandemic-related expenditures, excess funds and the high cost of COVID-19 testing fees.
Iloilo Rep. Janette Garin sought clarification on the agency’s USD100 million, USD485.18 million and USD300 million borrowings to support its “Philippine COVID-19 Emergency Response Project” (PCERP).
Another DOH project, “Health System Enhancement to Address and Limit COVID-19,” also had borrowings of USD125 million, USD700 million and USD500 million.
The DOH borrowed the amounts from the World Bank, Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB).
“Considering the P51 conversion rate, that’s tantamount to P1,719,180,000, but because the conversion rate has increased, instead of P112.7 billion naging P129.3 billion na siya. Ganun po kalaki ang utang natin pero marami pa rin ang namatay, maraming health care workers ang hindi nababayaran, maraming ospital ang hindi nare-reimburse at hindi rin natin ma-account kung ‘yong mga binili ba natin ay talagang nagamit,” Garin said.
Former DOH Secretary Francisco Duque III emphasized that the borrowings were a collective decision made in collaboration with the Department of Finance (DOF).
“Our guiding principle was to save lives and ensure there were enough vaccines. We aimed to provide sufficient protection for our citizens against the pandemic,” he stated.
Duque likewise highlighted the success of the vaccination campaign, with over 77 million targeted individuals vaccinated by the end of 2022, surpassing the target with more than 150 million doses administered.
Garin also asked for a breakdown of COVID-19 testing reimbursements and criticized the high initial costs, alleging misuse of World Health Organization’s (WHO) formulas and lack of consultation with other countries.
She also emphasized that legislative pressure led to the eventual cost reductions and highlighted the broader impact of high testing fees on the public.
Solicitor General Menardo Guevarra reported on irregularities in PhilHealth, which were identified by Task Force PhilHealth composed of the Department of Justice (DOJ) and other agencies in the Executive Department. The probe took place in 2020 under Guevarra’s tenure as the incumbent Justice Secretary.
PhilHealth’s violations include the purchase of ICT equipment worth P734 million that was not included in its Information System Strategic Plan.
There were also allegations of price padding and budget approvals which lacked the necessary Internal Audit Report.
The Interim Reimbursement Mechanism (IRM) allocated P27 billion for COVID-19 without proper approvals, while fund utilization were not monitored.
Institutions with pending cases received funds, liquidation deadlines were postponed, and taxes on IRM releases not withheld.
“You know, it’s sad to hear na parang nagtago sila sa COVID issue,” Quezon City Rep. Franz Pumaren said, noting that “based on the findings and everything, laging ang nagiging alibi or reason, because it’s a COVID (case) ay kailangan kaagad.”
PhilHealth is also poised to reimburse a significant amount of funds due to an error in calculating contributions. The agency has recognized the necessity of resolving the P89.9 billion gap that arose from indirect contributions over the period of 2022 to 2023.
Under the current law, PhilHealth has two primary options for addressing the excess funds: either enhance the benefits provided to its members or lower the contribution rates. Both courses of action are currently under study.
The meeting was presided over by committee senior vice chairperson and Marikina City Rep. Stella Luz Quimbo.
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