HOUSE leaders on Tuesday criticized the Philippine Health Insurance Corporation (PhilHealth) for prioritizing investments over healthcare services and called for immediate premium reductions and reforms to benefit its millions of members.
The criticisms emerged during a hearing of the House Committee on Good Government and Public Accountability, or the Blue Ribbon Committee, where lawmakers scrutinized PhilHealth’s ballooning funds, prompting Congress to propose zero subsidy for the agency under the P6.53-trillion national budget for 2025.
PhilHealth President Emmanuel Ledesma Jr. reported that as of October 2024, the agency holds a P150 billion surplus, P281 billion in reserves, and an investment portfolio nearing P489 billion. Ledesma cited PhilHealth’s financial stability and announced plans for a 50% increase in coverage for most case rate packages.
Despite these figures, lawmakers argued that PhilHealth’s growing reserves and investments have not translated into significant relief for Filipino families burdened with rising healthcare costs.
Manila 3rd District Rep. Joel Chua, chair of the Blue Ribbon Committee, raised concerns over unused government subsidies being diverted to investments rather than directly funding healthcare.
“Ibig sabihin ‘yung subsidy na supposedly ay binibigay ng gobyerno na tulong para magamit sa healthcare ay naipapasok sa investment, hindi sa healthcare?” Chua questioned.
PhilHealth Chief Financial Officer Renato Limsiaco admitted that surplus funds, after covering benefit payments, are directed into investments.
“Once pwede na tayo, nabayaran na natin ang benepisyo, the excess money ay pinapasok natin sa investment,” Limsiaco explained.
Chua stressed that healthcare services must remain PhilHealth’s priority. “Masyado tayong naka-focus sa investment aspect eh medyo ang serbisyo natin dito sa healthcare medyo hindi na natin naaasikaso. Healthcare benefit, instead sa investment. Dito ang investment natin buhay ng tao,” he said.
He explicitly told Ledesma: “Maybe you should change your focus, instead of your focus on investment, dapat dito po tayo [sa healthcare].”
House Assistant Majority Leader and Ako Bicol Party-list Rep. Jil Bongalon cited Republic Act 10606 or the National Health Insurance Act, which requires PhilHealth to use excess reserve funds to expand benefits and lower premium contributions.
“Malinaw sa batas… kapag may excess funds, ito ay dapat gamitin number one: to increase program benefits, and number two: to decrease the amount of contribution of the members,” he noted.
Bongalon challenged PhilHealth to fulfill both mandates. “Can you commit na hindi lang kayo naka-focus sa benefit expansion, but can you also commit na i-decrease ang premium contribution?” he asked.
Ledesma responded: “To answer your question, Mr. Chair, yes on that… We are fully supporting that reduction,” referring to a pending Senate bill to lower premium contributions from 5% to 3.25%.
Marikina 2nd District Rep. Stella Quimbo confronted Ledesma for repeatedly ignoring her calls to reduce premiums, especially for minimum wage earners.
“Nung huling budget hearing, ni-remind ko na po siya na dahil sobrang dami po ng kanyang pondo, ako po ay nanawagan na bawasan po niya ang premium contributions,” Quimbo said. “This year, I made the same call nung budget hearing, sinabi ko na may scope to reduce premiums, hindi pa rin pinansin ang ating panawagan.
Quimbo noted she had even filed a resolution calling for a moratorium on contributions for minimum wage earners.
Antipolo City 2nd District Rep. Romeo Acop questioned PhilHealth’s increasing investment income, which surged from P11.5 billion in 2022 to P20.7 billion in 2023.
“Ang utak po ninyo ay investment, hindi po service. You’re becoming a business enterprise, not a service enterprise,” Acop remarked.
Acop also cited PhilHealth’s rising investments in time deposits and government bonds.
“Your investment in time deposits local currency amounts to P135 billion in 2023, while in 2022 it was P126.4 billion. Now investment in government bonds… from P270.7 billion to P331.6 billion. Ang lalaki!”
Kabataan Party-list Rep. Raoul Manuel warned that PhilHealth’s focus on investments comes at the expense of its members.
“Ngayon pa lang in-expand ang coverage ng PhilHealth tapos hindi pa napapababaan ‘yung premium… Pero day-by-day may mga kababayan tayong namatay dahil ‘yung assets na pwedeng ma-convert into benefits para sa kanila ay hindi nila napakinabangan dahil sa misprioritization na ginagawa sa ilalim ng PhilHealth,” Manuel said.
Oriental Mindoro 1st District Rep. Arnan Panaligan underscored that PhilHealth’s management must prioritize compassion alongside financial expertise.
“More than competence in financial management, we also expect from PhilHealth ‘yung sense of compassion sa taong bayan, lalo sa mga mahihirap. Kasi healthcare pinag-uusapan dito,” Panaligan said.
Ledesma acknowledged the lawmakers’ concerns, saying PhilHealth would carefully review their points.
“We may have to change our policy,” he said.
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