Philhealth may collapse by 2022 if pandemic continues

On Tuesday, an official said in a Senate hearing into alleged irregularities in the agency that the Philippine Health Insurance Corp could collapse in 2022 without additional subsidy from the government and if the coronavirus pandemic persists.

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By next year po, wala na po tayong reserve funds. So one year lang po ang ating actuarial life,

[Next year, we no longer have funds. We only have one year actuarial life.] said Nerissa Santiago, Senior vice president of Philhealth’s Data Protection Office during the Senate hearing.

Santiago was responding to queries of Senate Minority Leader Franklin Drilon, who was inquiring about the actuarial life of Philhealth.

“So you’re saying that the actuarial life of Philhealth is only one year?” Drilon asked. “Are you saying that in 2022 there will be no more Philhealth?”

“Yes sir,” Santiago replied.

PhilHealth is set to incur net operating losses of P90 billion this year and P140 billion in 2021 if the pandemic persists and no vaccine is discovered, said Santiago. 

Drilon said the official’s disclosure was worrisome.

Before the coronavirus pandemic, PhilHealth’s actuarial life “is more than 10 years,” said its data protection officer Nerissa Santiago. 

However, the pandemic brought a “double impact” of decreasing collections and increasing payouts for the hospitalization of coronavirus patients, Santiago added. 

Santiago said, "We can only survive with additional contributions coming from the government,”

In an earlier reports, Philheath officials is facing widespread corruption allegations and is under investigation. Lately, they are being questioned about a purchase of allegedly overpriced equipment, software, and coronavirus test kits worth hundreds of millions of pesos.

Sen. Panfilo Lacson also questioned PhilHealth's release of funds to supposedly favored hospitals and dialysis centers.