Malacañang on Thursday assured the public as well as concerned government agencies and the Philippine Health Insurance Corp. that there is no cause for worry that Philhealth could go bankrupt in seven years due to government arrears of nearly P20 billion.

Budget Secretary Rolando Andaya rejected claims that Philhealth would face insolvency due to unpaid debts by the Department of Budget and Management, saying that the agency is in good financial standing.

“Hindi po totoo yan. Malayo po ‘yan sa katotohanan,” he said in a press briefing. He noted that Philhealth has a projected income of P6.8 billion this year.

He cited that last year, Philhealth’s income reached P10 billion, doubling its 2001 income.

Andaya said he is more than willing to meet Sen. Loren Legarda to explain the purported bankruptcy facing Philhealth.

At a Senate hearing on Wednesday, Legarda, who heads the Senate committee on health and demography, lashed at the DBM for its failure to pay its obligations to Philhealth since 2001.

Andaya maintained that the DBM has no unpaid debts contrary to Legarda’s claim that it owes Philhealth P19.2 billion.

“Philhealth claimed that there was P9 billion (arrears) based on their computations. But, definitely, walang P19 billion na utang,” the DBM chief said.

He said the government has in fact voluntarily increased the health insurance premiums for state workers following the signing of the Salary Standardization Law that calls for the salary hikes of government employees.

Deputy presidential spokesman Anthony Golez, in the same press briefing, said Health Secretary Francisco Duque has assured that Philhealth is “actuarially healthy and sound.” Philhealth Vice President Baby Mercado also said the agency is financially strong and stable.

In a statement, Philhealth said the DBM remitted about P388 million for 2006 and P85 million for 2007 aside from the P610 million which has been duly appropriated under this year’s General Appropriations Act.