Lawmakers have filed a measure seeking to grant emergency powers to the President for a period of one year to drastically and totally overhaul the corruption-ridden Philippine Health Insurance Corp. (PhilHealth).

Anakalusugan partylist Rep. Michael “Mike” Defensor, chairperson of the House Committee on Public Accounts, and Bulacan 1st District Rep. Jose Antonio Sy-Alvarado, chairperson of the House Committee on Good Government and Public Accountability, led the filing of House Bill No. 7832, the proposed "PhilHealth Crisis Act of 2020,” which prescribes urgent related measures necessary and proper to effectively address the problems and concerns affecting the PhilHealth.

They noted that preliminary funding estimates for the implementation of the Universal Health Care Act over the next five years starting in 2020 sees the need for an aggregate state funding of P1.437 trillion, starting at P257.5 billion in its first year, and gradually rising to P319.4 billion in 2024.

“The staggering amount needed to improve our health system should be safeguarded in order to ensure that the funds are used for their intended purposes. It is worrying that PhilHealth, as one of the primary conduits of the funds to be raised for the UHC Law, has a history of corruption issues,” they said.

Joining Defensor and Sy-Alvarado in filing HB No. 7832 are Surigao del Norte 2nd District Rep. Robert Ace Barbers, and Cavite 7th District Rep. Jesus Crispin Remulla, vice chairpersons of the House Committee on Public Accounts; Deputy Speakers Dan Fernandez, and Rodante Marcoleta; and Cavite 4th District Rep. Elpidio Barzaga Jr.

The lawmakers noted that the joint hearing by the Defensor and Sy-Alvarado panels raised issues of corruption and funding leakages, such as PhilHealth’s overpayment by as much as P102 billion to hospitals under all the case rate system from 2013 to 2018.

Thorrson Montes Keith, who had earlier resigned as PhilHealth anti-fraud legal officer in late July, said members of PhilHealth’s executive committee “misspent or pocketed” P15 billion.

“With these allegations of corruption running into the billions, ordinary Filipinos cannot help but think if the increase in their taxes and PhilHealth premiums are necessary to improve the health services they receive from their government,” they said.

“Within the context of a history of systemic corruption, a pandemic that is yet to end, and imminent implementation of the UHC law which will flush PhilHealth with a spike in funding, this makes for an emergency situation that requires drastic but thorough overhaul of the Philippine Health Insurance Corporation,” they said.

HB No. 7832 provides that in order to protect the funds of PhilHealth and cleanse the agency of graft and corruption, the President may enter into negotiated contracts for the following:

-Companies and/or individuals capable of providing actuarial study for PhilHealth;
-Companies and/or individuals who can provide accounting and auditing services;
-Offices and/or individuals who can provide legal services in pursuit of cases pending in PhilHealth and those that may be filed by PhilHealth management;
-IT services in coordination with the Department of Information and Communications Technology (DICT) which will provide a baseline assessment, study, and provision of necessary equipment required in relation to the payment of benefits and collection of premiums, among others; and other services necessary to ensure the effective and efficient function of PhilHealth.

The bill provides that companies and individuals who shall be awarded contracts under the terms provided shall have the proven competence and experience in similar projects, competent key personnel in relation to the task at hand, and sound financial capacity.

Under HB 7832, all the awarded projects shall be subject to existing government auditing rules and regulations governing negotiated contracts.

The measure also empowers the President to reorganize PhilHealth to make it "more effective, innovative, and responsive” to its current problems and concerns, including the sustainability of funds and the issues of graft and corruption.

It provides that the President may abolish or create offices, split, group or merge positions, transfer functions, equipment, properties, records and personal; institute drastic cost cutting measures, and take such other related actions necessary to carry out the provisions of the proposed Act.

The proposed "PhilHealth Crisis Act of 2020” states the authority granted to the President shall subsist, be valid and effective for a period of one year from the effectivity of the proposed Act, unless otherwise withdrawn or extended by a resolution of Congress.

HB 7832 requires the President to submit a quarterly report to Congress on the implementation of the proposed Act.