Filtered By: Topstories
News

DOH to recalibrate UHC implementation amid drop in sin tax collections


The Department of Health (DOH) will be coordinating with the economic managers of the government for guidance on how to adjust the budgetary requirements for the implementation of the Universal Health Care (UHC) law given the decreasing sin tax collections amid the pandemic, according to Health Secretary Francisco Duque III on Tuesday.

During a Joint Congressional Oversight Committee hearing, Senator Richard Gordon pointed out that government collection of excise taxes on alcohol, heated tobacco and vapor products has plummeted to P63.1 billion in January to May 2020 from P102.7 billion during the same period last year.

"Obviously this will affect the implementation of the Universal Health Care, providing funding for 2021. For 2020, more than half of the P192.5 billion funding for the UHC come from sin tax collections," he added.

During the same hearing, the DOH proposed a P182-billion budget for 2021 for the effective implementation of universal health care.

"So far, we have prepared our 2021 budget with the assumption that we are still on full implementation reflecting the new normal," Duque said.

While acknowledging that the drop in sin tax collections is "lamentable," the Cabinet official said the DOH will cope with the situation and consult the Department of Finance and Department of Budget and Management (DBM) on the matter.

"We will manage, we just have to make some adjustments but hopefully we'll even work harder to get the best value for money," he said.

Philippine Health Insurance Corporation (PhilHealth) President Ricardo Morales also emphasized the importance of sin tax in financing the National Health Insurance Program.

"Dun rin ho kasi tayo umaasa ng premium collection na binabayad sa subsidy," he said.

Morales bared that the state health insurer sees a budget deficit until 2024 due to the COVID-19 situation. It is asking for a P138-billion subsidy for 2021.

Under the 2020 General Appropriations Act, the PhilHealth received a P71.35 billion subsidy—lower than its proposed P153 billion subsidy for the year.

DBM division chief Johnry Castillo said that as of the moment, the national budget memorandum provides for an initial allotment of P71 billion for PhilHealth subsidy in 2021.

"We cannot say for sure if this will be increased because it's still undergoing the deliberation by the economic managers," he said.

Castillo added that PhilHealth and DOH will be among the "budget pressures" for 2021. —LDF, GMA News

LOADING CONTENT