Despite massive and growing unrest among citizen groups and objections from medical professionals, academics, civil society and grassroots organizations, all of whom are direct and indirect contributors to the Philippine Health Insurance Corporation (PhilHealth), Finance Secretary Ralph Recto confirmed that the second tranche of PhilHealth’s P10 billion cash transfer to the Internal Revenue Service was made as scheduled on August 21, sparking further public opposition.
On August 20, a citizens’ statement was sent to Malacañang urging President Marcos to halt the transfer of the second tranche. It was signed by a total of 2,242 signatories representing 149 organizations and 2,093 individuals from across the country. The broad-based citizen groups were also united against the diversion of PhilHealth’s first tranche of P89.9 billion, which was transferred on May 10, 2024.
In their statement, they explained that PhilHealth’s funds are generally financed through membership fees and indirect taxes on alcohol and sweetened beverages collected from the Filipino population. A significant portion of these indirect taxes is legally earmarked for PhilHealth. Therefore, given that private spending on health is as high as 45 percent, the diversion of PhilHealth funds is both illegal and immoral. This underscores the need to further expand health insurance, especially for the poor and socially excluded groups.
In the letter to President Marcos that accompanied the declaration, the citizens explained the concept of a social health insurance system that PhilHealth will provide to Filipinos, guided by the principle of social solidarity. This solidarity means sharing resources and risks among the people and everyone contributing to ensure financial health protection so that the young support the old, the healthy support the sick, and those who earn more support the poor and the vulnerable segments of the population.
They therefore requested that PhilHealth funds be retained with PhilHealth so that they can be used for the immediate expansion of benefit packages and the provision of outpatient and inpatient services from primary to tertiary care to reduce out-of-pocket costs and improve the overall health and well-being of all Filipinos.
“We believe that the responsibility lies with you, Mr. President. We trust that you will take seriously the outcry of our people. We look to you, not your subordinates, to think strategically and act decisively on this urgent matter,” they said in a letter to President Marcos. Unfortunately, their outcry was ignored by the President.
Meanwhile, the Declaration of Unity continues to resonate with Filipinos across the country, reinforcing calls for President Ferdinand Marcos Jr. to immediately halt future remittances scheduled for October and November 2024 and repay the P30 billion already transferred to the national treasury.
