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No more PhilHealth by 2022, senior VP says.
Philippine Health Insurance Corp. (PhilHealth) might collapse by 2022 without additional subsidy from the national government, the agency’s senior vice president Nerissa Santiago told the Senate on Tuesday, August 4.
“We are expecting by 2021, we will be on the red already in terms of actuarial life. In 2021 we will run into deficit. There would be no more reserve fund by 2021. So, one year lang po ang ating actuarial life,” Santiago said in a Senate hearing on the alleged corruption in PhilHealth.
The state insurer’s actuarial life was more than 10 years. But due to declined member contribution and the significant increase in payouts amid the COVID-19 pandemic, its actuarial life is down to one year.
“Are you saying that in 2022, there’ll be no more PhilHealth?” Senate Minority Leader Franklin Drilon asked, to which Santiago answered in affirmative.
According to Santiago, PhilHealth is expecting a P90-billion net operating loss in 2020, and P147 billion worth of losses by 2021, if the pandemic continues and no vaccine is discovered.
The senior officer said that additional subsidy from the government could keep PhilHealth from collapsing.
“The government has the responsibility to keep it afloat,” she said. “We can only survive with additional subsidy coming from the government.”
Senate President Pro Tempore Ralph Recto, disagreed with Santiago’s claim, saying the agency has P110 billion contingency fund.
"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," he said.
About P50 billion worth of funds will be used for COVID-19 testing and other coronavirus-related expenses.
"Hindi made-deplete 'yung P110 billion na reserve fund. May matitira pa ngang P60 billion next year," Recto said.
Senate opened its hearing on the alleged corruption in PhilHealth on Tuesday, August 4, where a former officer revealed that PhilHealth officers stole some P15 billion through different fraudulent schemes.