MANILA — In a pointed clarification aimed at dispelling public confusion, Department of Health Secretary Teodoro Herbosa emphasized Friday that the Philippine Health Insurance Corporation (PhilHealth) is strictly a health insurance provider, not a pension system.
Addressing widespread misunderstandings about the agency’s role, Herbosa noted critical distinctions between health insurance and pension plans, underscoring that each serves fundamentally different financial protection purposes.
“Many people do not understand the difference between pension and health insurance,” Herbosa stated, highlighting the need for public education about insurance mechanisms.
While pension insurance provides post-retirement income streams, health insurance like PhilHealth covers medical expenses and healthcare costs. The agency’s primary mandate remains financial protection against health-related expenditures.
Herbosa also raised concerns about PhilHealth’s management, suggesting internal operational challenges. “The management has been treating the fund like a pension fund, prioritizing fund preservation over member benefits,” he criticized.
The PhilHealth Board recently approved a PHP284 billion corporate operating budget for Fiscal Year 2025, notably without government premium subsidies for indirect contributors. This budget incorporates a reported PHP150 billion surplus as of October 31.
The revelation comes amid ongoing scrutiny of the state health insurer’s practices, signaling potential reforms to improve service delivery and financial transparency.
For individuals seeking retirement income, Herbosa recommended consulting the Social Security System or Government Service Insurance System, which specialize in pension insurance.
The clarification serves as a crucial reminder for Filipinos to understand the distinct roles of various insurance systems in their financial planning.