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Amid talks of bankruptcy, Recto says PhilHealth has P110-B reserve


Senate President Pro Tempore Ralph Recto on Tuesday said the Philippine Health Insurance Corporation (PhilHealth) has a P110-billion reserve fund to spend amid the pandemic.

He made this point after it was bared in a Senate hearing that the state insurer's actuarial life has been reduced to only a year due to "decreased collections" and an "expected increase in benefit payouts."

"The reason why may reserve fund ang Philhealth ay para sa ganitong mga sitwasyon na may pandemic halimbawa so samakatuwid, mayroon tayong itinabi na P110 billion sa ganitong pagkakataon," Recto said.

He then asked PhilHealth's acting Senior Vice President Nerissa Santiago how much the state insurer projects to spend for COVID-19 response this year.

Santiago said P28 billion for the treatment of over 200,000 COVID-19 patients and P22.5 billion for COVID-19 testing.

"P50B lang ang madadagdag na gastos this year so hindi made-deplete 'yung P110 billion na reserve fund," Recto said.

He added that aside from the estimated P78 billion collections of PhilHealth for the year from direct contributors, sin taxes will augment its fund.

Nevertheless, Recto said senators will still study the possibility of providing additional subsidies for PhilHealth under the proposed P4.5 trillion budget for 2021.

"Titingnan naitn kung magkano ang kailangan talaga na totoong numero ng PhilHealth. Kung kinakailangan, dagdagan ng ayuda o subsidy," he said.

Santiago earlier said PhilHealth will run out of reserve funds and enter into a deficit by 2021, and that it can only survive through government subsidies.

She added that the state insurer expects a net operating loss of about P90 billion this year. If the pandemic persists into 2021, the operating loss could reach P147 billion.

During the same hearing, PhilHealth board member Alejandro Cabading said the funds will not be enough for 2020 if leaks due to alleged irregularities remain unplugged.

In June, PhilHealth chief Ricardo Morales said the agency had enough funds to sustain operations this year even with the COVID-19 pandemic. — DVM, GMA News

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