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

Wazzup Pilipinas!?

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.

ARTA-World Bank B-READY Forum: Unlocking the Philippines' Business Potential

Wazzup Pilipinas!?

The Anti-Red Tape Authority (ARTA) and the World Bank Group joined forces to host the much-anticipated ARTA-World Bank Forum on “New Insights on the Philippine Business Environment: Exploring the World Bank’s Business Ready Report.” The event, held on February 3, 2025, at the QC-MICE Center in Quezon City, provided a deep dive into the findings of the World Bank’s Business Ready (B-READY) report and its implications for the country’s business landscape.

The Global Business Readiness Picture

The B-READY initiative is the World Bank’s new global benchmarking project that assesses the business environment across ten key areas of a business life cycle. The report analyzes over 1,200 indicators and provides a comprehensive overview of how economies perform in terms of business entry, location, financial services, taxation, international trade, market competition, business insolvency, and more​.

This forum served as a crucial platform for government officials, business leaders, and economists to explore the Philippines’ current standing and opportunities for improvement.

How Does the Philippines Perform?

The B-READY report reveals that the Philippines has enacted strong business regulations, yet there remains significant room for improvement in enhancing public services for businesses​

.

Strengths: Where the Philippines Excels

✔ Labor Market: The Philippines ranks among the top 20% of global economies, excelling in labor policies and regulations.

✔ International Trade: The country has implemented efficient electronic systems and interoperability of services for trade operations, making it a relatively strong performer in this area.

Weaknesses: Areas Needing Urgent Reform

❌ Business Entry: 

The Philippines ranks among the bottom 20% of global economies in terms of starting a business.

It takes around 75 days to register a new company in the Philippines, compared to just 3 days in the most efficient economies.

Entrepreneurs cannot fully register a business online, adding unnecessary delays and bureaucratic hurdles.

❌ Property Transfers: 

It takes an average of 90 days to transfer a property, whereas top-performing economies complete the process in just one day.

No online platform exists to register property transfers, slowing down real estate transactions.

❌ Electronic Payments & Financial Services:

Only 17% of firm payments in the Philippines are made electronically, whereas top economies reach over 99%.

The lack of liquidity risk provisions in electronic payment regulations hampers financial security for businesses.

❌ Business Insolvency:

The time to resolve liquidation proceedings in the Philippines is five years, while the most efficient economies complete it in just seven months.

The country does not allow electronic filing for bankruptcy procedures, adding further inefficiencies​.

Key Discussions at the Forum

The forum featured a high-profile lineup of speakers who shared insights and strategies to address these challenges​:

Undersecretary Gerald G. Divinagracia (ARTA) opened the event, emphasizing the importance of regulatory reforms to attract investments.

Dr. Dandan Chen (World Bank) provided a global perspective on business readiness.

Mr. Norman Loayza (World Bank) presented the B-READY report findings, outlining where the Philippines stands and where it can improve.

World Bank Group Director Norman Loayza gives the Presentation on World Bank Group's B- Ready Results at the ARTA- World Bank Group Forum on New Insights on the Philippine Business Environment: Exploring the World Bank's Business Ready Report

https://youtu.be/UgBI0fQ6G-E?si=RwTbxLFxNm0gqtH1

Secretary Ernesto V. Perez (ARTA) introduced the Ease of Doing Business Roadmap, a key government initiative aimed at cutting bureaucratic red tape.

ARTA Secretary Ernesto Perez presents the Ease of Doing Business Roadmap at the ARTA- World Bank Forum

https://youtu.be/lfvBbqgzf7k?si=3YTCgSD4e4Y9ZUb-

Vice President Raymund Jude Aguilar represented Consul Enunina Mangioof PCCI (Philippine Chamber of Commerce and Industry) and Co-Chair Ruy Y. Moreno of MAP (Management Association of the Philippines) provided private-sector reactions, highlighting how slow business registration and inefficient property transfers hurt entrepreneurs.

Hon. Ma. Josefina Belmonte-Alimurung (Quezon City Mayor) discussed the role of local government in improving business conditions.

Dr. Roberto Martin Galang (Ateneo de Manila University) provided an academic perspective on fostering a more competitive business environment.

The event concluded with a fireside chat where business leaders, policymakers, engaged in deeper discussions on necessary reforms​. A media conference with key personalities together with some members of the media followed.

Why This Matters for the Philippine Economy

A business-ready environment is crucial for economic growth, investment, and job creation. The private sector plays a major role in driving innovation, but without regulatory efficiency, businesses will continue to struggle with unnecessary delays and bureaucratic obstacles.

By addressing the weaknesses highlighted in the B-READY report, the Philippines can unlock its full economic potential and create a more dynamic and competitive business environment.

What’s Next?

✔ The Anti-Red Tape Authority (ARTA) will push for faster business registration processes and stronger digitalization efforts.

✔ Policymakers are expected to introduce reforms to improve the property transfer system and enhance e-payment adoption.

✔ The World Bank will continue working with the Philippine government to track progress and support policy improvements.

The ARTA-World Bank B-READY Forum has set the stage for a more transparent, efficient, and business-friendly Philippines. But real change will only happen if government agencies, businesses, and stakeholders work together to implement meaningful reforms.

Stay tuned as we track the progress of these crucial business reforms!

QC Mayor Joy Belmonte- Alimurung gives a special message and reaction from the LGU at the ARTA- World Bank Group Forum

Wazzup Pilipinas!?

QC Mayor Joy Belmonte- Alimurung gives a special message and reaction from the LGU at the ARTA- World Bank Group Forum on New Insights on the Philippine Business Environment: Exploring the World Bank's Business Ready Report held at the QC MICE Center in Quezon City

https://youtu.be/OkY6C529yug?si=ZePVMGlG4btkLkkh

This is the first time I've learned that Quezon City Mayor Joy Belmonte is married to Raymond Alimurung, the former CEO of Lazada Philippines.

As of February 2025, Raymond "Ray" Alimurung holds several prominent positions in the Philippine business sector:

General Partner at Kaya Founders: Ray manages the Zero to One Fund at Kaya Founders, an early-stage investment firm focusing on nurturing startups in the Philippines and Southeast Asia. 

Board Member:

STI Education Systems Holdings, Inc.: He serves on the board of this company, which is involved in providing educational services in the Philippines. 

Philippine Seven Corporation: Ray is a board member of the company that operates 7-Eleven convenience stores in the Philippines. 

PayMongo Philippines, Inc.: He holds a board position in this fintech company that offers online payment solutions for businesses. 

Advisor to Packworks: In July 2023, Ray joined the Board of Advisors for Packworks, a startup providing a business-to-business platform for sari-sari (neighborhood convenience) stores in the Philippines. 

Prior to these roles, Ray was the Chief Executive Officer of Lazada Philippines from 2018 to 2022, where he played a significant role in expanding the company's e-commerce presence across the country.

At the same event was another person with the same last name as her husband.

He was among the panelists at the Fireside Chat portion of the event together with Secretary Ernesto Perez, Director Norman Loayza, Vice President Raymund Jude Aguilar, Chair Ruy Moreno, and Dean Robert Galang.

Who is Michael Alimurung?

Michael Victor Nepomuceno Alimurung serves as the City Administrator of Quezon City. In this capacity, he acts as the principal advisor to the City Mayor, developing city plans and strategies, and overseeing city operations. He is also the chief architect of the city's e-governance initiatives and has spearheaded the expansion of social services, including the unified QCitizen ID. 

Before his role in the city government, Mr. Alimurung gained extensive experience in both the public and private sectors. He has worked with the Office of the President, the Social Security System, CNN Philippines, Wellspring Consulting, Citibank, and Procter & Gamble. He also served on the Board of Trustees for the Development Academy of the Philippines. 

In terms of education, he graduated from Ateneo de Manila University with a double degree in Management Engineering and Computer Science. He obtained his MBA from the Stanford Graduate School of Business and is currently completing his PhD in Public Administration at the University of the Philippines – National College of Public Administration and Governance. 

Additionally, Mr. Alimurung is the founder of Jericho Systems Corp. and the Bukas Sarili Foundation. He has also served as a director at Union Bank of the Philippines and Philex Mining Corporation. 

In his role as City Administrator, he has emphasized the crucial role of leadership in effectively implementing the Freedom of Information (FOI) initiative at the local level. 

For more information or to contact Mr. Alimurung, you can reach out to the Office of the City Administrator at Quezon City Hall. 

quezoncity.gov.ph