DOF Justifies Control Over PhilHealth Funds

PHILHEALTH / SAVED DECEMBER 29, 2021 The PhilHealth Local Health Insurance Office (LHIO) Caloocan https://www.philhealth.gov.ph/

The Department of Finance (DOF) reiterated its intention on Thursday to control P89.9 billion in surplus funds from the Philippine Health Insurance Corporation (PhilHealth). The aim is to allocate these funds to ”unprogrammed” budget items in the current fiscal year.

Euvimil Nina Asuncion, the director of the DOF’s legal services group, emphasized the need for these funds. The DOF seeks to address pressing budgetary requirements that were not anticipated during the budget planning process.

Asuncion stated that the excess funds could significantly support various government programs and projects. She pointed out that these funds are crucial for managing unexpected expenditures that arise throughout the year. The funds are intended to enhance important services, including health, education, and infrastructure, which may benefit the public.

The move to acquire control of the surplus has sparked debates. Some lawmakers and stakeholders have raised concerns about the implications of this decision. They argue that such a shift may affect the financial stability of PhilHealth, an organization tasked with providing health insurance to millions of Filipinos. Critics also expressed worries about the transparency and accountability surrounding the distribution of these funds.

PhilHealth officials have stated that the agency aims to maintain its financial resources for various healthcare programs. They emphasized the importance of keeping adequate reserves to ensure that health services remain accessible and effective for the population. The concern is that reallocating these funds could lead to a shortfall in PhilHealth’s ability to cover its obligations, particularly amid rising healthcare costs.

The DOF, however, maintains that the reallocation is a necessary step in meeting urgent national needs. Asuncion reiterated that the government must prioritize its fiscal responsibilities and ensure that budgetary resources are effectively utilized.

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