Gov’t commits to settle debts with Red Cross: Palace

Red Cross, last October, temporarily halted the coronavirus disease 2019 (Covid-19) testing it was doing for the government due to the more than PHP1-billion debt incurred by PhilHealth. It resumed testing after the state insurer paid half of its debt. (File Photo: Philippine Red Cross/Facebook)

MANILA – Malacañang on Thursday assured Philippine Red Cross (PRC) Chairman, Senator Richard “Dick” Gordon that the government will settle its remaining PHP623-million debt with the humanitarian organization.

Presidential Spokesperson Harry Roque said the government, particularly the Philippine Health Insurance Corp. (PhilHealth), has proven its commitment to settle its remaining debt to the PRC in the past.

“Magbabayad po ang national government. Napatunayan naman po ng national government na hindi po tumatalikod sa obligasyon ang national government (The national government will pay. The national government has already proved that they will not turn back on its obligation,” he said in a press briefing in San Vicente, Palawan.

Roque, however, said there would be a need to verify the total amount of debt based on the PhilHealth’s “three-tiered payment scheme.”

“Ngayon po, nag-a-undergo pa rin po ‘yan ng proseso ng verification at (Now, they’re undergoing a process of verification and) ensuring that it is pursuant to the three-tiered payment structure,” he added.

Red Cross, last October, temporarily halted the coronavirus disease 2019 (Covid-19) testing it was doing for the government due to the more than PHP1-billion debt incurred by PhilHealth. It resumed testing after the state insurer paid half of its debt.

In a TV interview on Wednesday, Gordon said the PhilHealth owes PRC a total of PHP623.32 million as of Dec. 1.

PRC spends about PHP25 million per day for testing.

Gordon said PhilHealth’s failure to settle its debt makes the amount pile higher every day.

The PRC and PhilHealth, he said, agreed that the bill should be settled within three days upon receipt, but PhilHealth currently averages nine days, sometimes even 12 days before it pays.

He warned that the PRC might once again be forced to halt its testing services unless PhilHealth brings down the debt to PHP100 million.