July 3rd, 2024
Rep. Joey Sarte Salceda
Philhealth regularly receives a subsidy from the National Government on top of the premiums it collects from its members. In other words, that’s taxpayer money, not contributor money. I think the reasoning of the DOF is that, if taxpayer money is sleeping in Philhealth, it’s better to use that money for other needs rather than borrow with interest. It saves the taxpayer money. It’s that simple.
The GAAs under President Marcos have already given Philhealth P162 billion in taxpayer-funded subsidies. If there’s still excess money, then that means we gave too much subsidies.
The other option, since Philhealth doesn’t spend all the money given to it, is to stop giving it a subsidy every year. I prefer our current approach of giving it a sizable subsidy at the start of the year, and then withdrawing the money later during the year if it proves to be too much.
We can’t have excess money sleeping around our GOCCs while withholding that same money from public investment. Low government spending reduces growth. Reduced growth creates poverty. Poverty creates hunger. Hunger creates disease.
Anyway, Philhealth will get a subsidy for 2025 – and budget season is about to start. If it can spend all that money next year, then there is nothing for the DOF to withdraw. No issue.