Even with the resignation of Ricardo Morales as president and CEO of the Philippine Health Insurance Corp. (PhilHealth) on Wednesday, the agency’s top post remains a revolving door for officials at the mercy of the regional vice presidents who tinker with its budget.

Executive Secretary Salvador Medialdea received Morales’ quit letter a day after no less than President Rodrigo Duterte had told him to resign due to his failing health, Senator Christopher “Bong” Go told the media.

Morales earlier disclosed that he is afflicted with lymphoma, a cancer of the lymph nodes.

But Morales would only follow the path taken by his predecessors who quit without a resolution to the long implanted corruption in the state health insurance agency.

President Duterte had long vouched for Morales’ honesty and described him as “clean.”

The Chief Executive did the same when he let go of two previous PhilHealth presidents — Drs. Celestina Ma. Jude de la Serna and Roy Ferrer, who both served just a year each in the agency despite the various reports of anomalies that happened under their watch and even earlier.

Morales served just one year and two months since he succeeded Ferrer in June 2019.

But while PhilHealth chiefs leave the agency with clean bills — certified no less by the President, its regional vice presidents (RVP) have remained in their positions, some for more than 20 years already.

Senator Richard Gordon, who initiated a probe on the PhilHealth’s expenses in the past, had tagged the “Mindanao Group” as the “mafia regional vice directors” in his report released on Tuesday.

He named the members of the mafia as Paolo Johann Perez, RVP for PRO IV-B since 1998; Valerie Hollero, RVP VI for six years (2013-2019); Dennis Adre, RVP XII since 1998; William Chavez, RVP VII from 1999; Jelbert Galicto, legal officer for CARAGA from 2008 and was briefly reassigned in the central office for eight months; Khaliquzzman Macabato, RVP ARMM from 2002; Miriam Grace Pamonag, RVP 12 from 2013; and Masiding Alonto, RVP IX since 1999.

Red flags
Their familiarity with their assigned localities made it easy for them to connive with the hospital recipients of PhilHealth funds, Gordon’s report said.

Their transactions had been red-flagged by the Health Insurance Data Analytics Committee (HIDAC) reports in April 2018.

These included the rise in alleged cases of pneumonia, sepsis, diabetic ketoacidosis, non-insulin dependent diabetes mellitus with other specified complications, pulmonary embolism with or without mention of acute cor pulmunae, skin diseases and reactive airways dysfunction and hypersensitivity pneumonitis.

This list of ailments supplanted the earlier case rate of alleged cataract operations which jumped to Caesarian section operations and then to pneumonia.

These RVP, Gordon’s report said, were found to have taken part in the case rate anomalies, upcasing, overpayments and fraudulent claims.

Gordon uncovered these claims while he was looking at the WellMed anomalies exposed no less by Ferrer.

The PhilHealth officials are also facing allegations of corruption involving the procurement of alleged overpriced IT equipment; the questionable release of funds under the corporation’s Interim Reimbursement Mechanism (IRM); and the alleged manipulation of the corporation’s financial status.

‘Abolish PhilHealth’
Former PhilHealth board member Jacinto Paras has called for the abolition of the PhilHealth, saying the government must start clean with a new public health insurance provider.

Health Secretary Francisco Duque, himself under fire for his mishandling of the government’s response to the COVID-19 pandemic, said he will accept Morales’ resignation.

Ironically, Duque had served the longest as PhilHealth president and CEO for four years — from 18 June 2001 to 1 June 2005.

It was a stretch that was allegedly marred with fraud when Duque initiated the release of PhilHealth cards to poor Filipinos allegedly to bolster the reelection chances of former President Gloria Macapagal-Arroyo against the late Fernando Poe Jr.
Duque had worked with Perez, Adre, Chavez and Macabato — who were said to be members of the Mindanao Group or mafia.

The Senate Blue Ribbon Committee led by Gordon on Tuesday filed criminal charges against former Health Secretary Janette Garin, former Budget Secretary Florencio Abad and former PhilHealth president and CEO Alexander Padilla over the alleged diversion of PhilHealth funds for senior citizens’ premiums to barangay health centers.

“It’s now clear that all regional directors had a hand and used the funds,” Gordon said. “The DoH got PhilHealth’s money. It does not lose money, its investments are earning.”

“Even those who had been accused in the Dengvaxia (dengue vaccine) anomaly remains in the PhilHealth and they continue to steal money,” he added.

‘A big joke’
Garin, now a Representative of Iloilo, labeled Gordon’s recommendation to file charges against her and two other officials of the Aquino presidency for the alleged diversion of P10.6 billion in PhilHealth money as a “big joke.”

“Apparently, the unofficial, unsigned report not released to the members of the committee is geared to divert attention of the public and protect the real mafia in PhilHealth,” Garin said.

“He (Gordon) has demonized me to the core,” she added. “Simply because I was a member of the Aquino Cabinet.”

Garin clarified that no appropriation for that amount and purpose was released.

Before Morales’ resignation, Rodolfo del Rosario also had quit as PhilHealth senior vice president.

Del Rosario was also facing questions about his appointment. He joined the PhilHealth’s rank as an employee in 1998 and passed the Bar examinations and became a lawyer only in 2016.

Del Rosario was appointed to his post in April last year without prior experience in law-related jobs.

Some senators said they will continue investigations and filing of charges before proper courts against the erring officials of the state insurance firm.

Senate President Vicente Sotto III also tagged Morales’ expected resignation as a “correct move.”

“Follow your commander-in-chief,” Sotto said in a text message.

But Sotto said his resignation will not mean that Morales will be off the hook, saying the Committee of the Whole report on the Senate’s investigation will hold all involved officials accountable.

“Wait for the report. No sacred cows!” Sotto added.

Go is also supporting the call for a continuous probe.

“The Department of Justice and the Ombudsman should continue with their investigations even if some of the PhilHealth officials have resigned,” Go said. “Their resignations do not absolve them of criminal liabilities.” (Daily Tribune)