MANILA — No law obstructs the transfer of the Philippine Health Insurance Corp. (PhilHealth) to the Office of the President from the Department of Health (DOH), according to the Department of Justice.
DOJ Undersecretary Raul Vasquez said over the weekend that the agency found no legal issues that could prevent the Office of the President (OP) from taking direct jurisdiction over PhilHealth, as the state insurer belongs to the executive department.
“We advise that there is no legal issue on the possible transfer of the PhilHealth to the OP as it is a legitimate exercise of the President’s power of control over the executive department, bureaus and offices, which justifies an executive action to carry out reorganization measures to ensure an efficient bureaucracy,” the legal opinion read.
This clears the way for PhilHealth to execute its proposal to transfer to the OP – a move that has been opposed by certain lawmakers, advocates and stakeholders of the health care industry.
They have pointed out, among other things, that it would not solve the problems of the state health insurer, and the move requires amending the PhilHealth charter through legislation.
The DOH had sought DOJ’s legal opinion after a technical working group composed of the DOH and PhilHealth was created earlier this year to evaluate the move.
Among the issues raised by the DOH were whether the transfer would encroach upon the duties of the Joint Congressional Oversight Committee, which is given authority under the law to implement the National Health Insurance Program (NHIP) and the Universal Health Care Act; and whether the transfer would affect the composition of PhilHealth’s board of directors
Vasquez stressed that even if the joint congressional committee has oversight powers on NHIP, PhilHealth is still responsible for submitting annual reports on NHIP’s implementation.
Meanwhile, he added that President Marcos could reorganize PhilHealth’s board of directors.
The DOJ also advised DOH that Marcos may transfer PhilHealth under his office through an executive order.
“The 1987 Constitution expressly confers to the President the power of control over all executive departments, bureaus, and offices. Corollary, the Constitution’s express grant of the power of control in the President justifies an executive action to carry out reorganization measures under a broad authority of law,” Vasquez added.
Move ‘does not make sense’
Last week, members of the medical community have expressed their opposition to the proposed transfer, saying the move will not help solve PhilHealth’s issues.
In an interview with “The Chiefs” on Cignal TV’s One News on July 11, public health advocate Dr. Minguita Padilla said, “First of all, we’re asking the reason why they even thought about this. This is a very unscientific way of doing things. Usually you say, there is a problem and then let’s try to find a solution. Now you are presenting us a solution without a problem.”
Private Hospitals Association of the Philippines Inc. president Dr. Jose Rene de Grano said they have not been consulted at all with regard to this proposed transfer of PhilHealth to OP.
“What we wanted on our side is the amendment of the law that covers PhilHealth and specifically, the quasijudicial powers of PhilHealth wherein they act as the accuser, prosecutor, judge and executioner. It is quite unfair to us, especially to the health facilities,” De Grano told “The Chiefs.”
Padilla said, “A lot of groups have studied the proposal and they’ve said it will not improve efficiency of the agency even if PhilHealth is transferred to the OP.”
“The logical answer would be to solve the problems of PhilHealth, but the first question is why? Why are they doing this? Efficiency? It doesn’t make sense,” she added.
At the same time, Padilla said, “How can you now investigate an agency that is under the most powerful person in the country? There might be lack of transparency, and you are talking about health insurance. Health insurance requires the utmost transparency because you are paying for people’s health.”
She stressed, “We are contributors to PhilHealth. This is public money.”
She also said, “We need to reform a lot of things inside PhilHealth like the IT (information technology) system.”
Padilla said some hospitals are not being paid on time, while some doctors are being charged with double billing.
“Though they did not really double bill, but the system, portal and PhilHealth do not speak the same language. The legal system in PhilHealth has to be overhauled as well,” Padilla, former head executive staff at PhilHealth, said. (philstar)
