Philippine Health Insurance Corporation

Last updated

Philippine Health Insurance Corporation
Company type Government-owned and controlled corporation
Industry Insurance
FoundedFebruary 5, 1915;110 years ago (1915-02-05)
February 5, 1995;30 years ago (1995-02-05)
Headquarters
Citystate Centre, 709 Shaw Boulevard, Oranbo, Pasig
Area served
Philippines
Key people
 Hon. Teodoro “Ted” Herbosa (Chairman)
Edwin M. Mercado [1] (President and CEO)
Services Health insurance, Universal health coverage
Decrease2.svg₱148.3 billion [2]  (2022)
Owner Department of Health
Website www.philhealth.gov.ph

The Philippine Health Insurance Corporation (PhilHealth) is a tax-exempt, government-owned and controlled corporation (GOCC) of the Philippines that provides health insurance to the country. It was created on 1995 to implement universal health coverage in the Philippines, and is attached to the Department of Health. On August 4, 1969, Republic Act 6111 or the Philippine Medical Care Act of 1969 was signed by President Ferdinand E. Marcos and implemented in August 1971.

Contents

Its stated goal is to "ensure a sustainable national health insurance program for all", according to the company. [3] In 2010, it claimed to have achieved "universal" coverage at 86% of the population, although the 2008 National Demographic Health Survey showed that only 38 percent of respondents were aware of at least one household member being enrolled in PhilHealth. [4] Nevertheless, this social insurance program provides a means for the healthy to pay for the care of the sick and for those who can afford medical care to subsidize those who cannot.

The system works by having individuals who can afford to pay health insurance pay either monthly, quarterly, or yearly premiums to PhilHealth for their health insurance. The amount they pay is based on their employment status and salary. Individuals who cannot afford the premium such as indigents are subsidised by either the national or their local governments. [5] [6]

History

The Philippine Medical Care Program began in 1971 following the Philippine Medical Care Act of 1969. [7] It mandated creation of the Philippine Medical Care Commission (PMCC). In 1990, bills were passed that led to significant improvement of public health care insurance. House Bill 14225 and Senate Bill 01738 became Republic Act 7875, known as "The National Health Insurance Act of 1995". Approved by President Fidel Ramos on February 14, 1995, this become the basis of the Philippine Health Insurance Corporation. [8] On its 16th anniversary, the song "PhilHealth: Tapat na Serbisyo, Tapat na Benepisyo, Lahat Panalo" was introduced . [9]

Mandate and functions

PhilHealth has six major membership categories covering nearly the entire population. Those who count under the (1) "Formal" sector are workers employed by public and private companies and other institutions. (2) "Indigents" (also called "PhilHealth Ng Masa") are subsidized by national government through the National Household Targeting System for Poverty Reduction. (3) "Sponsored Members" are subsidized by their respective Local Governments (LGU). (4) "Lifetime" (non-paying) members are retirees and pensioners which have already paid premiums for 120 months of membership. (5) "Senior Citizen" (under RA 10645) allows all Filipino citizens 60 years old and above to be eligible to have free PhilHealth coverage. (6) "The 'Informal Economy' is composed of informal sectors, self-earning individuals, organized groups, Filipinos with dual citizenship, and natural-born citizens. Although treated separately, the Overseas Filipino Workers (OFW) program or migrant workers are part of the informal economy. Migrant workers are sub-categorized as either land-based or sea-based (for seafarers).

Jose Laurel Street, San Miguel, Manila 7785San Miguel, Manila Roads Landmarks 25.jpg
Jose Laurel Street, San Miguel, Manila

Since 1996, the benefits package and delivery system have improved. PhilHealth now has an Outpatient and Diagnostic Package limited to indigent beneficiaries. This addition creates nearly comprehensive coverage for indigents. In 2011, 23 Case Rates was introduced and in 2013, All Case Rates was fully implemented. All other beneficiaries have access to nearly all comprehensive services, excluding some outpatient care. PhilHealth has an accreditation program for private hospitals. [10]

Some key reform indicators to date include:

On average, 90 out of every 100 claims are paid, 3 to 4 are denied, and 6 to 7 are returned to health care providers for more information. 28% of claims were submitted by public providers and 72% by private providers. [11]

Frauds and controversies

In 2013, fraudulent claims Juan Miguel of Regional 1 started fire with against the state-health insurer were estimated at 4 billion pesos. However, the state failed to prosecute erring doctors, private and public hospitals, and public officials. AFP Medical Center, St. Luke's Hospital, Philippine Orthopedic Hospital, University of Santo Tomas Hospital, East Avenue Medical Center, Cardinal Santos Medical Center, Medical City, National Kidney and Transplant Institute, General Santos Doctors Hospital (GSDH) were investigated for health insurance fraud. [12] In Iloilo, eye-doctor claims for 2,071 operations in 2006 amounting to PHP16 million in professional fees were also investigated. A hospital in Davao City also noticed that a janitor, not a PhilHealth member, had been lying in bed to claim benefits as a PhilHealth-accredited patient. [13] Also in 2006, PhilHealth revoked the accreditation of Sara Medical Clinic in Midsayap for admitting ghost patients. [13] 2018, A lawmaker was shocked to find out that Philhealth interim president Celestina Dela Serna spent one year living at a hotel worth P3,800 per night instead of renting a condominium unit or apartment in Metro Manila. Negros Oriental Rep. Arnulfo Teves said he and House Speaker Pantaleon Alvarez had the chance to talk to Dela Serna during an event at the House of Representatives, and they were appalled at her extravagant lifestyle. "She admitted to staying in the hotel for one year or more… More or less one year sa hotel siya nakatira charged to Philhealth and she said she thought it was okay, that's why she did it," he said. Teves said Dela Serna told him and Alvarez that she stayed at Legend Villas, where rooms are worth at least P3,800 a night. [14]

A Change.org petition was made by a group of overseas Filipino workers (OFWs) to scrap the agency's directive to increase the mandatory contribution collection to 3%. [15] The petition refers to PhilHealth Circular 2020-0014, [16] dated April 2, 2020, in which the current OFW salaries are affected especially in the ongoing pandemic. [15] President Rodrigo Duterte then suspends the collections, and the agency is looking at a longer payment period following backlash. [17]

On July 24, 2020, anti-fraud legal officer Thorrsson Montes Keith resigned due to rampant corruption and anomalies within the agency. [18] His salary and hazard pay have been delayed from the time he started and his resignation would be effective August 31. According to Presidential Spokesman Harry Roque, it would be looking into the alleged overpricing of the proposed IT system supposedly costing around PHP 2 billion[ citation needed ], with one laptop allegedly bought at a staggering cost of 115.32 million pesos[ citation needed ]. [18] [19] PhilHealth has yet to receive the resignation letter and a statement in response. The Senate is looking to investigate the allegation. [20] [21]

On August 25, 2021, Senator Richard Gordon presented the Senate blue ribbon committee report containing the findings of its 2019 investigation into the alleged fraud and corruption within the state-run health insurer. Video footage inside the report included a PhilHealth Regional Vice President receiving a gift which turned out to be a girl wearing a bra and underwear dancing in front of the RVP, and employees shouting as one could expect a show from a nightclub. [22]

On August 26, 2021, the President and chief executive officer of PhilHealth, Ricardo Morales resigned from his post over anomalies in the agency. Morales said that he will submit his resignation letter to the Malacanang Palace. [23] [24] PhilHealth SVP for Legal Sector Rodolfo del Rosario Jr. also resigned. [25]

In September 2023, Philhealth was hacked with the Medusa ransomware. Multiple employee and other internal data were breached, with a possibility of member data as well. The hackers responsible for the ransomware demanded $300,000 or around PHP 17 million. [26] Philhealth refused to pay the ransom, thus the hacker group published all the stolen data in the dark web. Multiple sensitive data became available publicly such as hospital billing, internal memos, and identification documents. Philhealth has said that member data has not been compromised as it is located in a separate server. The National Privacy Commission has begun investigating in regards to the true extent of the leak. [27]

On August 2, 2024, the Senator Koko Pimentel public health advocates group filed certiorari and prohibition with restraining order to stop the transfer of P89.9 billion PhilHealth funds to the national budget. The petitioners challenged the constitutionality of DOF Circular No. 003-2024. Secretary Ralph Recto, however, defended the remittance of unused government subsidies to the national treasury. He explained that the Circular merely implements of a Congressional order under Section XLIII (1)(d) Republic Act No. 11975, the General Appropriations Act 2024. [28]

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References

  1. ↑ "Mercado is new PhilHealth President & CEO" . Retrieved February 4, 2025.
  2. ↑ "PhilHealth Annual Report 2022" (PDF) (Press release). Retrieved January 7, 2025.
  3. ↑ "R.A. 7875 – An Act Instituting a National Health Insurance Program for All Filipinos and Establishing the Philippine Health Insurance Corporation for the Purpose" (PDF). Archived from the original (PDF) on September 4, 2011. Retrieved July 6, 2011.
  4. ↑ Niel Lim, INCITEGov and VERA Files. "'Conservative' and 'sluggish' PhilHealth misses healthcare target". GMA News. Retrieved July 6, 2011.
  5. ↑ Balana, Cynthia (September 29, 2010). "PhilHealth doubles premiums". Philippine Daily Inquirer. Archived from the original on October 1, 2010. Retrieved May 6, 2011.
  6. ↑ "PREMIUM SUBSIDY FOR INDIGENTS UNDER THE NATIONAL HEALTH INSURANCE PROGRAM" (PDF). Department of Budget and Management. Archived from the original (PDF) on September 28, 2011. Retrieved May 6, 2011.
  7. ↑ "REPUBLIC ACT No. 6111". The LawPhil Project. Retrieved July 7, 2011.
  8. ↑ "Philippine Health Insurance Corporation celebrates 15th Anniversary". Manila Bulletin. October 1, 2010. Retrieved July 7, 2011.
  9. ↑ "PhilHealth Corporate Profile". Archived from the original on July 20, 2011. Retrieved July 7, 2011.
  10. ↑ "Get to know your PhilHealth benefit in just one click". January 30, 2015.
  11. ↑ "Based on 2008 claims reports". PhilHealth website. December 2008.
  12. ↑ Espejo, Edwin (May 26, 2011). "Philippines: How to cure PhilHealth's woes?". Asian Correspondent. Newsbreak. Archived from the original on October 9, 2011. Retrieved July 6, 2011.
  13. 1 2 Espejo, Edwin (May 25, 2011). "Bogus claims haunt PhilHealth". Newsbreak. Retrieved July 6, 2011.
  14. ↑ "Buhay reyna! PhilHealth chief Dela Serna spends a year living in P3,800 per night hotel". Politiko. June 1, 2018. Retrieved March 27, 2019.
  15. 1 2 "300,000 sign online petition opposing increase in OFW PhilHealth contributions". Rappler . May 3, 2020. Retrieved July 24, 2020.
  16. ↑ Morales, Ricardo C. (April 2, 2020). "Premium Contribution and Collection of Payment of Overseas Filipinos Members" (PDF). Philippine Health Insurance Corporation.
  17. ↑ Lopez, Melissa Luz (May 4, 2020). "Duterte suspends higher PhilHealth premiums for OFWs, makes payments 'voluntary – Roque". CNN Philippines . Archived from the original on May 5, 2020. Retrieved July 24, 2020.
  18. 1 2 Santos, Eimor (July 24, 2020). "PhilHealth under probe, denies widespread corruption alleged by resigned officer". CNN Philippines . Archived from the original on July 24, 2020. Retrieved July 24, 2020.
  19. ↑ Ranada, Pia (July 24, 2020). "Duterte orders probe into PhilHealth 'anomalies'". Rappler. Retrieved July 24, 2020.
  20. ↑ Ismael, Javier Joe (July 24, 2020). "Senate sets probe on PhilHealth 'corruption'". The Manila Times. Retrieved July 24, 2020.
  21. ↑ Domingo, Katrina (July 23, 2020). "PhilHealth officer resigns due to 'widespread corruption' in agency". ABS-CBN News. Retrieved July 24, 2020.
  22. ↑ Ramos, Christia Marie (August 25, 2020). "Senate panel report: PhilHealth exec 'getting a lap dance' during birthday bash". INQUIRER.net. Retrieved August 26, 2020.
  23. ↑ "PhilHealth chief Morales to file resignation letter Wednesday". GMA News Online. August 26, 2020. Retrieved August 26, 2020.
  24. ↑ "PhilHealth top official resigns, CEO Morales set to step down". cnn. Archived from the original on December 30, 2020. Retrieved August 26, 2020.
  25. ↑ "Investigation probably 'a little easier' after PhilHealth's SVP for legal quits – Atty. Thorrsson Montes Keith is considered a hero by many Filipinos, no one has ever accomplished gathering so much direct evidence and imputing high ranking officials such as Senator Richard Gordon, Secretary Francisco Duque and Brigadier General Ricardo Morales and others which led to the resignation of BGen. Morales and Atty. Del Rosario from their posts. Guevarra". GMA News Online. August 26, 2020. Retrieved August 26, 2020.
  26. ↑ "Hackers demand $300,000 for compromised PhilHealth database". CNN Philippines. September 25, 2023. Archived from the original on September 25, 2023. Retrieved October 16, 2023.
  27. ↑ "Hackers begin publishing PhilHealth data on dark web – DICT". CNN Philippines. October 3, 2023. Archived from the original on October 3, 2023. Retrieved October 16, 2023.
  28. ↑ Gonzales, Anna (August 2, 2024). "Recto ready to answer questions on transfer of PhilHealth funds". Philippine News Agency . Retrieved August 3, 2024.
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