House of Representatives (MANILA BULLETIN)

Both minority and majority congressmen are eyeing a deeper probe into the P15.5-billion advance payments made by the Philippine Health Insurance Corporation (PhilHealth) to hospitals under its controversial Interim Reimbursement Mechanism (IRM) program. 

During Wednesday’s oversight hearing of the House Committee on Appropriations, House members aired their concerns over the legality and transparency of the IRM program, which was implemented during the previous Duterte administration. 

Gabriela Party-list Rep. Arlene Brosas, a House assistant minority leader,  raised critical questions about the IRM, a system that advanced P15.5 billion in funds to private and government hospitals during the Covid-19 pandemic. 

“Ang allegation ay P15.5 billion na binulsa umano ng PhilHealth officials through fraudulent schemes? Pinautang sa mga negosyante and hospital owners itong budget na ito para sana sa emergency fund para sa mga natural disasters? Meron na rin ba na naging liable, baka maaari na nating makuha ang report nila?” Brosas asked. 

(The allegation is that PhilHealth officials pocketed P15.5 billion through fraudulent schemes. Was this budget, which were meant to be emergency funds during natural disaster, lent to businessmen and hospital owners? Have persons been held liable, maybe we can get their report now?) 

The IRM controversy happened in PhilHealth during the previous administration of former president Rodrigo Duterte. 

Brosas, member of the Makabayan bloc, chided PhilHealth officials for being unable to answer her questions on the program. “Dapat may institutional memory ang ating PhilHealth, ‘di ba? Kaya nga natin sila pinapatawag kasi gusto naman natin itahi ang mga nangyari noong nakaraan hanggang ngayon." 

(PhilHealth should have institutional memory, right? The reason why we summoned them is for them to help us connect what happened then to what's happening now.) 

Meanwhile, House Deputy Majority Leader and Iloilo 1st district Rep. Janette Garin, questioned the legality of using PhilHealth funds as capital for private and government hospitals. She noted that these weren't government funds but rather the contribution of members. 

"Ang ginawa noong nakarang administrasyon, ginamit ang pera ng PhilHealth. Ang pera ng PhilHealth hindi ‘yan government funds. Pondo ‘yan ng mga miyembro ng PhilHealth because it's an insurance mechanism,” Garin pointed out. 

(What the past administration did was use PhilHealth's money. PhilHealth funds aren't govenrment funds. Those are PhilHealth members' funds because it's an insurance mechanism.) 

She continued, “The first question here, was it legal? And I believe, Madam Chair, that is something this committee should look into." 

Marikina City 2nd district Rep. Stella Quimbo, who presided over the hearing, also raised concerns about the selection process of the facilities that received IRM funds. 

“Nagkaroon din tayo ng initial findings na ang pagpili ng facilities na nakatanggap ng IRM ay tila walang naging connection sa Covid patterns. So sino, paano pinili ang facilities na ito?” Quimbo, senior vice chairperson of the committee, asked. 

(The initial findings also showed us that the facilities that received IRM didn't have any connection with Covid patterns. So who, and how were these facilities chosen?" 

The committee then decided to summon previous PhilHealth officials to provide more insights into the program. 

“Kung hindi tayo masasagot ng current officials ng PhilHealth, maybe we will be enlightened kung ipatawag natin ang previous officials,” Brosas suggested. 

(If the current officials of PhilHealth can't answer our questions, maybe we will be enlightened if we summon their previous officials.) 

It was confirmed that PhilHealth’s president and CEO at the time of the IRM’s implementation was Ricardo Morales, a retired army general. Acting on a motion by Garin, the committee also ordered PhilHealth to submit all pertinent documents related to IRM. 

“PhilHealth should provide this committee with all the pertinent documents including minutes of all the meetings conducted related to the conceptualization up to the implementation of the interim reimbursement mechanism,” Garin moved. 

The motion also included a request for the names of all officials, whether career or appointed, involved in the program’s formulation. 

The oversight hearing was part of an effort to enhance government accountability and efficiency.