The Philippine Health Insurance Corp. is in danger of going bankrupt in the next seven years unless the government pays the P19.2 billion arrears it owes the agency.

Sen. Loren Legarda made this assessment Wednesday after a hearing on the measure calling for mandatory universal health care coverage pending at the Senate committee on health and demography.

Legarda, who chairs the committee, said Philhealth officials themselves disclosed that the country’s health care institution is in danger of insolvency because of unpaid debts by the Department of Budget and Management to the company since 2001.

Philhealth Vice President and Deputy Chief Actuary Nerissa Santiago pointed out to the committee that the multi-billion debt of the government could affect its delivery of services to some 17 million current Philhealth members by 2016.

Legarda slammed the DBM for failing to pay its obligations of nearly P20 billion. Officials of the DBM were a no-show during the hearing.

“Papaano na iyong 17 million Filipinos na umaasa sa Philhealth para sa kanilang pangangailangan sa kalusugan? Kaya dapat talaga tingnan ng husto ang operations ng Philhealth at bayaran ng national government sa pamamagitan ng DBM ang utang na halos P20 billion sa Philhealth mula 2001,” Legarda said after the hearing.

Santiago said that based on their study, the life fund of Philhealth could shrink in the next seven to ten years if the DBM debt remains unresolved.

“Regarding the resource and the life of the fund, based on our study as of 2008…without increasing the contribution rate…and considering the projections based on what we perceived would be the membership for the next 10 years or so, the life of the fund is only until 2016,” Santiago told the committee.

During the hearing, it was also learned that some politicians are using Philhealth cards to advance their electoral plans but the cards themselves are already expired.

Legarda vowed to look into the matter, saying that while there is nothing wrong for politicians to allot their countrywide development funds (CDF) or “pork barrel” to Philhealth premiums, it must not be used for politicking.

“I want to know what comprises the P19.2 billion that could cause the bankruptcy of PhilHealth,” Legarda said.

“I also want to know who were those who got an ‘overnight’ concern with Philhealth at meron mga litrato sa mga PhilHealth cards, tapos expired palang ipinamimigay,” she stressed.