PhilHealth has over ₱7B in unsettled disallowance — COA

Metro Manila (CNNN Philippines, September 12) — The Philippine Health Insurance Corporation (PhilHealth) has yet to settle over ₱7.8 billion in disallowances issued by the Commission on Audit (COA) as of end of 2022.

In a 51-page report, among the reasons noted by state auditors in the detailed list of disallowed funds are cash gifts, Christmas and birthday packages, bonuses and allowances paid to employees without legal basis, and excess payments to suppliers and contractors.

PhilHealth's head office has the highest sum of disallowances with ₱ 1.9 billion, followed by PhilHealth's Central Luzon office with over ₱610 million, and National Capital Region and Rizal offices with around ₱604 million.

A disallowance indicates the disapproval of a transaction or expense during the audit process. Persons found liable for a disallowed disbursement are required to refund the amount either in whole or in part.

Some of the disallowances are over a decade old, with notices originally issued in 2008. These remain pending as respondents file multiple appeals all the way up to the Supreme Court to get the disallowance lifted.