In recent debates, a significant controversy has arisen over the Philippine government's move to redirect P89.9 billion from the PhilHealth fund.

This action, enabled by a rider provision in the 2024 General Appropriations Act ( GAA) allows the Department of Finance (DoF) to access excess funds from Government-Owned and Controlled Corporations (GOCCs) like PhilHealth.

The insertion of this rider provision raises further questions. Who initiated this move, and why did no legislator oppose it?

The lack of opposition is troubling and suggests either a lack of awareness or complicity among lawmakers, which requires urgent scrutiny. It's remarkable that with more than 300 members of the House of Representatives and 24 members of the Senate, not one opposed this rider provision, which was unheard of in the past.

Whoever this 'financial genius' is, he or she deserve congratulations for finding a way to deprive millions of Filipinos of increased medical benefits—a truly impressive feat of governance!

The provision's origins and lack of opposition raise serious concerns. Here's why this move could pose severe risks to the nation's healthcare system and why it demands closer scrutiny.

1. PhilHealth is a Lifeline for the Vulnerable

PhilHealth plays a crucial role in providing health coverage to those who cannot otherwise afford it, including seniors, the disabled, and other vulnerable groups. For many, PhilHealth is the only safety net ensuring access to essential healthcare services. Redirecting funds away from PhilHealth would jeopardize the health and well-being of these populations.

2. Misplaced Priorities

Removing government subsidies for healthcare shifts the financial burden onto contributors, who are already funding the system through taxes—essentially, the people's money. Redirecting these funds to unprogrammed government projects reflects a misplaced sense of priority.

3. Government Misallocation of Essential Funds

Using PhilHealth funds for government projects, whether health-related or not, undermines the primary purpose of these funds and indicates a disturbing misallocation of resources. Health insurance funds should enhance and expand healthcare services, not cover budget shortfalls or fund non-essential projects. This misallocation not only diverts resources from critical healthcare needs but also diminishes public trust in the government's management of public funds.

4. Where will the excess PhilHealth funds go?

There's concern that they could be redirected to pet projects of politicians, where they are prone to corruption. PhilHealth's excess funds should benefit the contributors directly, either by expanding services like outpatient medical coverage or by lowering members' contributions. This would enhance the system's value to its members and improve access to healthcare services.

5. Strengthen and Expand Benefits

The Department of Finance (DoF) should focus on pushing PhilHealth to expand its services rather than stripping it of its resources. This is particularly critical given the ongoing healthcare needs of the population. An expanded PhilHealth can provide broader and more comprehensive coverage, including better outpatient services, which would benefit all members.

6. Risk to Healthcare System Stability

Redirecting funds from PhilHealth risks destabilizing the healthcare system. Hospitals are already struggling with delayed reimbursements from PhilHealth, leading to closures and reduced services. If PhilHealth funds are depleted, this problem will only worsen, reducing access to quality healthcare and potentially leading to more hospital closures. Moreover, this could erode the capacity of the healthcare system to respond to public health crises, leaving the nation vulnerable in times of need.

7. Questioning PhilHealth’s Excess Funds

How can PhilHealth claim to have savings or excess funds when many hospitals are reporting unpaid reimbursements and a significant portion of the population, including marginalized groups, persons with disabilities, and indigenous people, are still not enrolled in the system? This discrepancy between reported excess funds and the ongoing issues faced by healthcare providers and vulnerable populations calls into question the accuracy and transparency of PhilHealth’s financial claims.

The DOF claims the redirected funds will support urgent needs, such as unpaid COVID-19 frontliner allowances. However, if COVID-19 frontliners are truly important to the government, why are they only being paid now, two years after the pandemic? And why were these payments placed in the unprogrammed fund rather than being prioritized?

This delay and questionable funding placement raise concerns about the government's commitment to those who risked their lives during the crisis. If the well-being of frontliners was genuinely a priority, these payments would have been addressed promptly and adequately funded.

While writing this piece, we heard politicians shamelessly grandstanding for reelection, pretending to question DoF and Philhealth officials about the excess fund transfer. The reality is, these same legislators are responsible for allowing the rider provision that made this fund transfer possible in the first place. Stop insulting the intelligence of the Filipino people with these theatrics and take responsibility for your actions.

Lastly, Congress is known for investigating anomalies in government, but when Congress itself is remiss in its duties to protect the people, who will investigate them?

With the 2025 election approaching, it's time to judge these politicians who have failed to safeguard our interests. Their track record on critical issues like this should be a major factor in evaluating their future roles in government.

Ed Javier

Ed Javier is a veteran communicator with over 34 years of professional experience both in the private and public sectors. He is also an entrepreneur, political analyst, newspaper columnist, broadcast and online journalist.