PhilHealth board rejects P37.5-m marketing collateral for anniversary

Metro Manila, Philippines - The board of directors of the Philippine Health Insurance Corp. (PhilHealth) has vetoed tens of millions worth of marketing collateral for the corporation’s 30th anniversary.

In a statement on Wednesday, Dec. 18, the Department of Health said the PhilHealth board, which it chairs, called for proper spending of resources for the benefit of the health insurer’s members, amid public criticism that the corporation is awash with cash due to inefficiency in processing claims.

The board turned down the following proposed items totaling roughly P37.5 million:

+ jackets - P13.65 million

+ umbrellas - P7.9 million

+ perforated mesh stickers - P7.3 million

+ anniversary shirts - P3.64 million

+ marketing shirts - P1.94 million

+ tote bags - P1.82 million

+ katsa bags - P750,000

+ button pins - P545,000

“Urging for financial responsibility, the Board of Directors decided to cancel the proposed procurement to save government funds and ensure its proper allocation for the benefits of PhilHealth members,” the DOH said in a statement

The agency said the proposal reached the PhilHealth board on Monday and was “immediately vetoed.”

It was also at Monday's meeting that the board approved around P284 billion as PhilHealth's operating budget for 2025.

Congress scrapped PhilHealth's request for P74 billion in subsidy for next year amid the corporation's P150-billion surplus in the current year.

Senators’ ire

PhilHealth has proposed close to P138 million in spending for its 30th anniversary year-round celebration next year. Former DOH special adviser and health reform advocate Tony Leachon posted the breakdown on social media, assuming it was for a Christmas party budget.

In response, PhilHealth said the approved activities for the anniversary were “reasonable, budgeted following existing limits set by the government.”

The proposal caught the ire of senators during Wednesday’s hearing of the Senate committee on health and demography.

“Ano ba ito? Gala night and sports fest…habang ang dami-daming nangangailangan ng health care,” Sen. Loren Legarda said.

[Translation: What is this? Gala night and sports fest, while many are in need of health care.]

The gala night would cost P13 million and sports fest P32 million.

“Kaya nga ang tanong ko po sa inyo kanina pa, kung sakaling natuloy po ito, ilang pasyente ang makikinabang dito? Ilang pasyente na naghihingalo ang matutulungan dito? Ilang buhay pa po ang masasalba dito? Kaya sabi ko sa inyo, dito sa atin sa gobyerno, parati isipin natin konsensya,” said Sen. Bong Go, the committee chairperson.

[Translation: That’s why my question was, if this were to be approved, how many patients would benefit from this? How many dying patients will be helped? How many lives will be saved? That’s why I told you, in government, we should always think of conscience.]

“We are only planning to spend a few hundred thousand pesos for our 30th anniversary, ‘yan lang po, wala pong mga [that’s it, there’s no] excessive spending,” PhilHealth President and CEO Emmanuel Ledesma told senators.

PhilHealth spokesperson Ish Pargas clarified to NewsWatch Plus that the current budget proposal for the anniversary was P48.5 million.

“But nothing is final yet,” Pargas said.

Pargas said the PhilHealth board told the management to “reevaluate the activities and items” for the anniversary plan.

Ledesma’s statement, however, would also be considered by PhilHealth's anniversary committee.

Legarda asked Ledesma to submit a memorandum to the committee explaining how PhilHealth’s anniversary committee came up with the hundred million-peso proposal.

Rey Baleña, PhilHealth acting vice president corporate affairs group, is the anniversary committee head, Ledesma said.