Alexander Padilla, president and chief executive officer of PhilHealth [Philippine Health Insurance Corporation] on Thursday debunked reports that the agency is on the brink of bankruptcy and has only six to 10 months to live.
“PhilHealth will still have a long life,” Padilla said, maintaining that the health insurance agency’s financial condition is “robust.”
The report about PhilHealth’s dwindling fund cited board member Eddie Dorotan’s statement that last year’s payout was larger than the members’ monthly contributions and income. Dorotan reportedly said that PhilHealth earned P96 billion in 2015, but paid out P97 billion in total claims.
But Padilla, in an interview with The Manila Times, claimed that Dorotan was misquoted.
“Our board member attended an opening of PhilHealth’s new office in Bicol when he was interviewed. I’m sure that he was misquoted,” Padilla said.
“Ed Dorotan is a very responsible member of our board and he is only doing what is good for PhilHealth. I haven’t talked to him but I think the local reporters did not fully understand PhilHealth,” he added.
While he admitted that the health insurance agency lost P1 billion in 2015, Padilla clarified that PhilHealth has P128 billion in reserves as of this year.
Padilla explained that it will take 128 years to deplete PhilHealth’s funds if the loses continue.
“So our fund is robust. PhilHealth has grown tremendously and has become multifaceted in its delivery of timely benefits and quality to its members,” Padilla said.
He added that although the collection in 2015 was P4 billion short of their P100 billion target, PhilHealth had P7 billion investment earnings last year.
Even if they fail to collect any contributions in case huge disasters and calamities hit all contributors, Padilla said the national government is mandated by the law to pay the benefits of its members.
“So there is nothing to worry about,” he said.
For 2016, PhilHealth hopes to collect P126 billion, with P114 billion in benefit payments.