The Philippine Health Insurance Corp. (PhilHealth) denied reports that it is on the brink of bankruptcy and its operating funds were only good for about six to ten months.
According to PhilHealth President and CEO Alexander Padilla, the media misquoted or misunderstood Board member Eddie Dorotan, who disclosed that the corporation lost one billion pesos in 2015.
During the inauguration of the Local Health Insurance Office (LHIO) in Legazpi City on Tuesday, Dorotan said PhilHealth earned 96 billion pesos and paid 97 billion pesos in health insurance coverage to its members last year.
Dorotan also stated that PhilHealth is currently improving its efforts to collect from its members both in the private and government sector to prevent its financial collapse. He noted that the corporation had billions of pesos in collectives from the government sector alone.
PhilHealth is financially healthy
Meanwhile, Padilla issued a statement clarifying that PhilHealth is financially stable to alleviate the concerns of members regarding the health of its insurance funds.
“PhilHealth’s finances are as robust, healthy and substantial as ever. Proof of this is our ability to pay for the benefits claims of our members at an amount that has been steadily growing over the last five years,” said Padilla.
He explained that even if PhilHealth paid one billion more than its collection from premium contributions, it investment income was 7 billion person. It only means that its operating funds remain positive.
Padilla emphasized, “Thus there is no reason for our members and other stakeholders to worry about our capacity to meet our obligations.”
PhilHealth reserve funds increased to 128 billion pesos
Furthermore, Padilla said PhilHealth’s reserve funds increased to 128 billion pesos last year from 112 billion pesos three years ago.
“We are mandated to maintain a reserve fund level equivalent to two years so that we can readily address our members’ need should any eventuality happen,” he said.
According to him, PhilHealth operates on a pay-as-you-go system, meaning it is translating its collections immediately into benefits payments for its members.
Padilla implored the media to understand carefully the operations of the National Health Insurance Program (NHIP) given the fact that there are 93 million Filipinos depending on it for their coverage. PhilHealth wants to assure its members regarding its ability to keep up with its commitment to provide them with health coverage.