Ranking lawmakers who led the House probe into corruption at the Philippine Health Insurance Corporation (PhilHealth) want to give President Rodrigo Duterte special powers to reorganize and reform the embattled agency.

In the joint report of the House committees on public accounts as well as good government and public accountability, lawmakers recommended the passage of 3 bills, two seeking to grant the President more powers to fix PhilHealth:

• House Bill (HB) No. 7832 on the PhilHealth Crisis Act of 2020 
• HB 7429 or the Social Health Insurance Crisis Act of 2020

The proposed PhilHealth Crisis Act would give Duterte the power to enter into negotiated contracts with companies and individuals providing the following services:

• Conduct an actuarial study or to evaluate risks and maintain the economic stability of PhilHealth
• Accounting and auditing services
• Legal services in pursuit of cases pending with PhilHealth
• IT services in coordination with the Department of Information and Communications Technology for the payment of insurance premiums
• Other services “necessary to ensure effective and efficient function” of PhilHealth

Under the proposed measure, those to be awarded PhilHealth contracts are service providers with proven competence and experience in similar projects, competent personnel, and sound financial capacity.

The awarded projects would also be subject to existing auditing rules and other regulations governing negotiated contracts. 

The PhilHealth Crisis Act of 2020 would empower Duterte to abolish or create offices; split, group, or merge positions; and transfer functions, equipment, properties, records, and personnel in PhilHealth.

The President would also be allowed to implement “drastic” cost-cutting measures at the state health insurer. 

If passed into law, the PhilHealth Crisis Act would grant Duterte these special powers for one year upon the effectivity of the measure. 

The bill was co-authored by the following legislators:

• Anakalusugan Representative Mike Defensor, committee on accounts chair
• Bulacan 1st District Representative Jose Antonio Sy-Alvarado, committee on good government and public accountability chair
• Surigao del Norte 2nd District Representative Robert Ace Barbers, committee on public accounts vice chair
• Cavite 7th District Representative Jesus Crispin “Boying” Remulla, committee on good government and public accountability vice chair
• Deputy Speaker Dan Fernandez, Laguna 1st District
• Deputy Speaker Rodante Marcoleta, Sagip
• Cavite 4th District Representative Elpidio Barzaga Jr

But former Government Corporate Counsel Rudolf Philip Jurado earlier told Rappler such a proposal is “questionable,” as the President can already reorganize, privatize, or abolish Philhealth even without a new law.

The separate investigations in the House and the Senate revealed widespread corruption in PhilHealth – from the alleged “illegal” releases under the now-suspended Interim Reimbursement Mechanism and the multibillion-peso overpayments in the case rate packages for insurance claims. (READ: CHEAT SHEET: Alleged PhilHealth anomalies uncovered in Congress probes)

At the end of the probes, legislators concluded that Health Secretary Francisco Duque III, former PhilHealth president and CEO Ricardo Morales, and other executives are criminally and administratively liable for the anomalies. 

Duterte has since named National Bureau of Investigation director Dante Gierran as next chief of PhilHealth despite the latter’s lack of expertise on public health.

Privatizing PhilHealth?

The joint House committee report also pushes for the passage of the Social Health Insurance Crisis Act of 2020 authored by Marikina City 2nd District Representative Stella Quimbo.

In her bill, Quimbo wants to allow the Chief Executive to revamp the executive leadership and reorganize PhilHealth. 

This includes the privatization of any or all segments of the agency “to make them more effective and innovative to address the social health insurance crisis.”

Like the PhilHealth Crisis Act, HB 7429 would allow the President to create offices, transfer functions, equipment, records, and personnel, and institute cost-cutting reforms in PhilHealth. 

The President may also upgrade the compensation of PhilHealth personnel, but rates must be commensurate to the “improved and efficient” revenue collection of the agency. 

HB 7429 would also create a Joint Executive-Legislative Social Health Insurance Crisis Commission – a majority of which would be composed by Cabinet officials – to primarily carry out the necessary steps to reorganize PhilHealth. 

The bill would give the President and the new commission up to two years to complete reforming PhilHealth. 

Quimbo said in her explanatory note that her bill aims to address the “failure of leadership” that has long plagued the agency.

“Indeed, certain PhilHealth officials have been promoted with the organization despite being charged in court. This underscores the need for a massive overhaul of the current system, through the reorganization and privatization of PhilHealth,” said Quimbo.

But PhilHealth chief Gierran is already wary of privatizing the agency, saying doing so may send a “wrong signal” to the public that the government cannot be trusted to do its job. – Rappler.com