DOF defends PhilHealth remittance of unused subsidies to treasury

The Department of Finance (DOF) defended its directive for PhilHealth to remit PHP89.9 billion in unused government subsidies to the national treasury, stating that utilizing idle GOCC funds is a prudent fiscal option.

Critics argue this move violates the Universal Health Care Law, but DOF maintains it complies with legal requirements and does not affect PhilHealth's operations or viability.

DOF emphasized that these remittances do not come from member contributions but are unused national government subsidies, and noted that PhilHealth still has a PHP500 billion benefit chest for claims.

House Appropriations Committee Chairman Elizaldy Co expressed support for the DOF's initiative, stating it underscores efficient resource management and prioritizes public welfare without imposing new taxes or increasing debt.

Co highlighted that moving funds from PhilHealth will not hurt its fund life as only excess funds are being utilized, and these funds have been identified by Congress as stranded within PhilHealth.

DOF believes utilizing these funds is crucial at a time when people need them most, enabling the release of PHP27.5 billion to pay for pandemic-era service allowances of frontliners.