MANILA, Philippines – The unsettled disallowances of the Philippine Health Insurance Corporation totaled P7.58 billion as of end-2023, slightly lower than the P7.86 billion when that year began.
Based on the 2023 audit report for the state health insurer of the Commission on Audit (COA), the largest chunk of disallowances are due to unauthorized allowances, bonuses, cash gifts, cash assistance, cash incentives, gratuity, and Christmas package for agency officials and employees.
Among the biggest amounts disallowed include:
- P467.7 million in provident fund contribution in 2020
- numerous salary adjustments worth P524.21 million through the years
The state health insurer’s head office had the highest share of disallowances at P1.84 billion, a quarter of the total, followed by regional offices in Central Luzon (P610.45 million), Western Visayas (P583.4 million), and National Capital Region (P571.72 million).
A notice of disallowance essentially compels an agency to return the amount to the state treasury, but it is not immediately enforced because government bodies like PhilHealth appeal to eternity.
Some of the unsettled disallowances for PhilHealth go as far back as 2003.
The state health insurer has constantly challenged COA’s rulings.
The commission has issued notices of finality of decision (NFDs) on PhilHealth’s disallowances amounting to P85.52 million, but state auditors acknowledged that the resolutions are not really final yet.
“Upon inquiry, the financial management sector still considers the decisions related to these unrecorded NDs as not final, anticipating ongoing Supreme Court trials and possible actions… which may affect the finality of the decisions regarding these NDs,” the audit team said. – Rappler.com