PhilHealth says it is financially sound, not bankrupt

Government Corporate Counsel Solomon Hermosura asserted before the Supreme Court that the Philippine Health Insurance Corporation (PhilHealth) is financially sound and cannot go bankrupt.

Hermosura clarified that the P1.15 trillion figure cited in financial reports represents a provision for future obligations based on actuarial estimates, not actual debt.

He explained that this provision for insurance contract liabilities does not equate to current monetary claims against PhilHealth, meaning there is no immediate financial distress.

Hermosura further distinguished PhilHealth from private insurance firms, stating it operates as a state insurance company and has not issued any outstanding insurance contracts.