Recto Opposes Reduction in PhilHealth Contributions



MANILA, Philippines — Finance Secretary Ralph Recto has expressed his opposition to a proposed measure to reduce contributions to the Philippine Health Insurance Corp. (PhilHealth). Instead, he advocates for enhancing the benefit packages provided by the state health insurer.


Recto's stance follows PhilHealth President and CEO Emmanuel Ledesma Jr.'s announcement that he plans to recommend a decrease in premium and contribution rates to President Marcos.


PhilHealth and Recto have faced scrutiny after Recto ordered the return of P89.9 billion in unused funds from the agency to finance projects under unprogrammed appropriations.


"I would prefer to improve benefit packages for all members to reduce out-of-pocket costs," Recto stated in a Viber message to The STAR. He acknowledged that enhancing benefit packages might take time to ensure efficiency and prevent fraud.


Recto suggested that the Department of Health (DOH) and PhilHealth review and potentially simplify the current 9,000 case rate packages.


While Recto does not support reducing contribution rates, he emphasized that the final decision rests with PhilHealth.


Lawmakers' Concerns


Lawmakers have questioned PhilHealth's financial management, pointing out that despite having substantial funds, Filipinos are still required to pay high premiums for health insurance. Senator Bong Go previously called for a suspension of the five percent increase in premium contributions.


Recto noted that PhilHealth has a P500-billion fund to cover multi-year claims and will continue to receive government subsidies, with plans to expand benefit packages next year.


Opposition from Labor Coalition


Labor coalition Nagkaisa has called for the cancellation of the order transferring P89.9 billion from PhilHealth to the national government, arguing there is no legal basis for the transfer. They urged President Marcos to rescind the Department of Finance circular and return the P20 billion already transferred in May.


Support for Contribution Reduction


Some senior lawmakers praised PhilHealth's plan to recommend a reduction in premium rates. Representative Robert Ace Barbers and House Deputy Speaker David Suarez welcomed the news, suggesting that reduced contributions could lead to additional services and benefits from PhilHealth.


House Ways and Means Committee Chairman Joey Salceda emphasized that it would be more beneficial for PhilHealth to increase the benefits for its members. He pointed out that PhilHealth has around P500 billion in excess funds and suggested that these could finance a significant portion of catastrophic healthcare needs, particularly for senior citizens.


Salceda proposed that PhilHealth submit a plan to utilize its excess funds for better packages and to expedite the payment of overdue obligations.


In summary, while Recto opposes the reduction in contributions, he emphasizes the need for better benefit packages, a sentiment echoed by some lawmakers who also highlight the importance of efficient fund utilization by PhilHealth. 

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