DOJ reviews PhilHealth-Red Cross deal on COVID-19 tests

The Department of Justice (DOJ) is reviewing a P100-million agreement between the Philippine Health Insurance Corp. (PhilHealth) and the Philippine Red Cross (PRC) for COVID-19 tests. Justice Secretary Menardo Guevarra said his department is giving the review "preferential attention" and will come out with a legal opinion within the week. Under the memorandum of agreement (MOA), PhilHealth reportedly made an advance payment of P100 million to the PRC for COVID-19 testing services despite Philippine laws mandating reimbursements instead. Guevarra said PhilHealth chief Dante Gierran had requested an opinion on the MOA before PhilHealth "makes a decision to pay its indebtedness to the Phil Red Cross." PhilHealth owes the PRC over P930 billion. The PRC stopped COVID-19 tests chargeable to PhilHealth after October 14 until the state insurer pays its overdue balance. Presidential spokesperson Harry Roque said the government will pay half of PhilHealth's debt to the PRC within this week or next week and expressed optimism that testing services will continue. Guevarra said the review is about the validity of the MOA and may result in civil liability, but criminal liability did not appear to be off the table. "We are not ruling out anything until we have completed a thorough review of the subject MOA and laws applicable to the said deal," he said in a message to reporters. — RSJ, GMA News

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