The House of Representatives Committee on Appropriations has directed a special audit of the Philippine Health Insurance Corporation’s (PhilHealth) advance payments program, which has been linked to alleged corruption during the Duterte administration, as reported by Manila Bulletin.
In a recent oversight meeting with the Department of Health (DOH), Iloilo 1st district Representative Janette Garin, who serves as House Deputy Majority Leader, urged the Commission on Audit (COA) to scrutinize PhilHealth’s Interim Reimbursement Mechanism (IRM).
“I move that the [COA] conduct a special audit in relation to the conduct of IRM with focus on, first was it legal? Second, was it ethical and proper? And third, was it implemented properly?” Garin said during the meeting.
The IRM program, which provides emergency cash advances to healthcare institutions, was used extensively during natural disasters and the Covid-19 pandemic. However, Garin, a former DOH Secretary, raised concerns about the program’s funding sources and ethical considerations.
“PhilHealth is an insurance, right? Insurance means the money of the members is used for when they need it, such as for health needs,” Garin emphasized. She questioned the practice of advance payments, drawing an analogy to paying for a building fire before it occurs.
Marikina 2nd district Representative Stella Quimbo, who presided over the hearing, approved Garin’s motion after no objections were raised.
During the pandemic, PhilHealth advanced PHP 15.5 billion to both private and government hospitals. Garin pointed out that some of these funds went to facilities that did not cater to Covid-19 patients, raising concerns about the proper use of PhilHealth’s resources.
“The issue here is not whether there was embezzlement or not, that’s just one of the issues,” Garin remarked. “What we are more concerned as legislators and as PhilHealth members is whether PhilHealth’s money, which is actually members’ money, is being used correctly, especially for our indigents who need PhilHealth funds when they get sick.”
Previous congressional inquiries revealed that IRM funds were disbursed to healthcare institutions facing fraud allegations, with criticisms also directed at the alleged political bias in the release of the funds. PhilHealth officials have consistently denied these claims of favoritism.