PhilHealth Fund Controversy Sparks Outrage: Labor Group Decries Government's Betrayal of Universal Healthcare Commitment

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In a move that has ignited public fury, the Public Services Labor Independent Confederation (PSLINK) has lambasted the government for its alleged abandonment of Universal Healthcare (UHC) principles, accusing officials of siphoning off P60 billion from PhilHealth's reserves to bolster the National Government’s funds. This controversy comes at a time when the Supreme Court is set to deliberate on petitions challenging this controversial transfer on February 4.

The core of PSLINK’s outrage stems from the burden placed upon the shoulders of direct contributors—formally employed workers, many of whom are minimum wage earners—who now bear the brunt of funding the healthcare of all PhilHealth members. The labor group condemns the classification of these vital reserves as "excess," emphasizing that such funds are crucial for expanding benefits and minimizing out-of-pocket expenses. Instead of enhancing healthcare services, the government has allegedly diverted resources, compelling members to endure increased premium rates introduced in early 2024.

The crisis deepened when Congress decided to defund PhilHealth, allocating it a zero budget for 2025. PSLINK calls this a gross act of negligence and a betrayal of the social contract that underpins PhilHealth's existence. By law, the government is mandated to subsidize premiums for those unable to afford them, a responsibility the labor group argues has been discarded.

Reports of PhilHealth’s indirect contributors being denied treatment at hospitals further underscore the consequences of defunding. This alleged denial contravenes Section 9 of the UHC Act, which guarantees uninterrupted access to benefits regardless of premium payments. PSLINK fears that these troubling reports are early signs of a healthcare system buckling under financial strain.

Adding to the controversy, PSLINK accuses the government of engaging in a deliberate strategy to mismanage and defund PhilHealth, potentially laying the groundwork for its privatization. The labor group warns that transitioning PhilHealth from a public service to a profit-driven entity would jeopardize affordable healthcare for millions of Filipinos, undermining the nation's healthcare infrastructure.

Questions have also been raised about the diversion of sin tax funds, intended for Universal Healthcare under Republic Act 11346 (the Sin Tax Law), which were reportedly not fully allocated to PhilHealth for 2023 and 2024. This redirection of funds, PSLINK asserts, represents another breach of public trust, depriving citizens of their rightful access to free, accessible, and quality healthcare services.

PhilHealth Under Siege: A Broader Healthcare Crisis?

The PhilHealth controversy is not occurring in isolation but is part of a broader context of healthcare challenges in the Philippines. The increasing premiums, coupled with the defunding, suggest a looming healthcare crisis that threatens to widen the gap between the insured and uninsured.

A Call to Action: Protecting Public Healthcare

PSLINK’s demands are unequivocal. The labor group calls on the government to restore the diverted funds and reaffirm its commitment to Universal Healthcare. "Ang kalusugan ay karapatan, at hindi utang na loob" (Health is a right, not a privilege), they insist, stressing that healthcare should not be treated as a favor but as a fundamental right.

About PSLINK

Representing over 114,000 government employees across national agencies, local government units, state universities, government corporations, and more, PSLINK continues to champion the rights of public servants and the communities they serve. As they rally against these perceived injustices, their battle cry resonates nationwide: Uphold the promise of Universal Healthcare for every Filipino.

The unfolding drama around PhilHealth's funding crisis invites critical reflection on the future of healthcare in the Philippines. With the Supreme Court set to weigh in, the nation waits to see whether justice and public health will prevail over fiscal maneuvering and political expediency.

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