Philhealth denies it’s running out of funds

THE Philippine Health Insurance Corp. (Philhealth) yesterday denied reports that its operating funds are good only for six months.

“We would like to clarify some news reports… that might have caused panic among our members, especially where the stability of the health insurance funds is concerned.

“Philhealth’s finances are as robust, healthy and substantial as ever. Proof of this is our ability to pay for the benefit claims of our members at an amount that has been steadily growing over the last five years,” said Philhealth president and chief executive officer Alexander Padilla.

Padilla said that in 2011, Philhealth paid about P34 billion, about P44 billion in 2012, up to P55 billion in 2013, P77 billion in 2014, and about P97 billion in 2015.

He said that while Philhealth paid P1 billion more than what it collected in premium contributions in 2015, the firm gained about P7 billion from investment income, resulting in positive numbers still.

“There is no reason for our members and other stakeholders to worry about our capacity to meet our obligations,” Padilla said.

At the same time, he said, Philhealth’s reserve funds have been growing steadily, too, from about P112 billion in 2012 to P128 billion in 2015.

“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.

“While other social protection programs maintain probably higher levels of reserve funds, we operate on a pay-as-you-go system where we immediately translate what we collect into benefit payments for our members,” Padilla said.

He said there was a need to carefully understand how the National Health Insurance Program (NHIP) works so that Philhealth members are constantly assured of the firm’s capability to keep up with its 93-million strong members who rely on the NHIP for their health coverage.