The Philippine Health Insurance Corp. (PhilHealth) denies being on the brink of bankruptcy, insisting that it remains a “sound and stable institution” with close to P7.4 billion in net income in the first half of 2018.
The state insurance firm also had interest and other income amounting to P3.1 billion, with an operating expense of P2.5 billion.
PhilHealth received around P59.8 billion in premium collections from January to June, which is higher by P4.6 billion when compared to the same period the previous year, Roy Ferrer, acting president and chief executive officer, said on Tuesday.
As of June 2018, Ferrer said that PhilHealth had already paid close to P53 billion in claims, of which a quarter went to the medical care of senior citizens and lifetime members.
Of the total claims, he added, P13.2 billion went to the care of sponsored and indigent members.
According to Ferrer, the latest figure “ultimately dispels any notion” that the government insurance firm is financially in trouble.
“We have been through tough times and it is with capable leadership and management that we have been able to rise from the ashes of alleged bankruptcy and have become a sound and stable institution that looks after the welfare of the Filipinos, especially the poor and the marginalized,” Ferrer said.
In July, the Commission on Audit (COA) expressed concern over PhilHealth’s financial viability after the firm incurred a net loss of P4.75 billion last year.
This was because PhilHealth only had an income of P5.7 billion last year, when its total expenses reached close to P10.5 billion.
“The premium contributions under the current contribution rate will not be sufficient to cover all current PhilHealth claims and the future benefit availments, thus reduction in the actuarial life of the agency is imminent,” the COA said in its report.
Ferrer noted that, apart from PhilHealth’s payment of the claim reimbursements incurred last year, it was also reviewing its 2017 finances.
“As early as now I am confident that it will produce a positive data, not a loss,” he said. /atm