HOUSE YF REPRESENTATIVES
RECEIVED

SEVENTEENTH CONGRESS OF THE )

REPUBLIC OF THE PHILIPPINES) 08 AUG 2016
First Regular Session )
HOUSE OF REPRESENTATIVES
2594 TION UNIT
H. No. BILLS Wn inex SoaVncE

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT
PROVIDING FUNDING SUPPORT FOR UNIVERSAL HEALTH CARE COVERAGE
AND IMPROVING PHILHEALTH BENEFIT PACKAGES BY ALLOCATING
SEVENTY PERCENT (70%) OF THE PHILIPPINE CHARITY SWEEPSTAKES
OFFICE CHARITY FUND FOR SUCH PURPOSE, THEREBY AMENDING REPUBLIC
ACT NO. 1169, AS AMENDED BY BATAS PAMBANSA BLG. 42

Explanatory Note

The PCSO has previously been mired in controversies over the alleged misuse of its
Charity Fund - a billion pesos fund utilized to undertake medical and other social welfare
program and projects of the PCSO and implemented through the services of Non-Government
Organizations (NGOs), the Church and other program partners as conduits of funds for charity
projects to the people.

Given the discretionary nature of the Charity Fund and the lack of clear accountability
provided in the PCSO charter, the disbursement of the Charity Fund has not been in accordance
with specific standards and is only subject to the approval of the PCSO board.

Furthermore, the public is left in the dark as to the magnitude and allocation of the PCSO
Charity Fund. There is no transparency in the use of the fund because it does not go through the
usual budget scrutiny as it is considered an off-budget item and, therefore, not discussed in the
congressional public hearings on the General Appropriations Bill.

For as long as we leave the disbursement of the Charity Fund in the hands of the PCSO
board, allegations of abuse in its utilization will continue to be a thorny problem for the
institution.

This bill intends to amend the charter of the PCSO. Seventy percent (70%) of the Charity
Fund which constitutes 30% of the net receipts of the PCSO shall be used for the National Health
Insurance Program administered by the PhilHealth for universal coverage as well as improving
its benefit packages.

The equivalent amount shall be included in the General Appropriations Act (GAA) as a
Special Purpose Fund for the counterpart shares of the national and local government in the
National Health Insurance Program under the PhilHealth. Thus, “What you see is what you get”
as reflected in the GAA and no more “pork barrel” for the PCSO board.

Hence, instead of the PCSO funneling the funds to its various government hospital
beneficiaries, PCSO’s Charity Fund would now be directly infused to PhilHealth that will allow
indigents to seek treatment in government and private hospitals as well.

Given such set-up, indigents no longer need to suffer the long queues of patients in the
PCSO for financial assistance before they can line up in the hospitals for the medical services.


Instead, they can go directly to any hospital accredited by the PhilHealth to avail the needed
hospital services.

The provision of funds for PhilHealth will hasten the achievement of universal health
care coverage that will grant health insurance coverage for the poorest of the poor. The pressure
to raise new taxes to cover increasing requirements of the program will also be eased. And,
instead of PhilHealth members having to pay increased contributions to pay for enhanced
benefits, the PhilHealth with additional funding from PCSO will now finance the additional cost
of improved health services and benefits.

The full implementation of universal coverage and improved benefit packages will
increase the health expenditures of PhilHealth and will reduce out-of-pocket expenditures which
have dire implications to the people particularly the poor. This will result in freeing scarce
household funds that can now be used for other basic expenses like education and food. The
availability of insurance can also shield the people from distress having to face unexpected
hospital expenses.

In view of the foregoing, the approval of the bill is earnestly sought,“ aie a



SEVENTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES)
First Regular Session )

HOUSE OF REPRESENTATIVES
2594

H. No.

Introduced by Representative Vilma Santos-Recto
6th District of Batangas

AN ACT

PROVIDING FUNDING SUPPORT FOR UNIVERSAL HEALTH CARE COVERAGE
AND IMPROVING PHILHEALTH BENEFIT PACKAGES BY ALLOCATING
SEVENTY PERCENT (70%) OF THE PHILIPPINE CHARITY SWEEPSTAKES
OFFICE CHARITY FUND FOR SUCH PURPOSE, THEREBY AMENDING REPUBLIC
ACT NO. 1169, AS AMENDED BY BATAS PAMBANSA BLG. 42

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

Ais

SECTION 1. Section 1 of Republic Act No, 1169, as amended by Batas Pambansa Blg.
hereby further amended to read as follows:

"SECTION 1. The Philippine Charity Sweepstakes Office (PCSO). ~ The
Philippine Charity Sweepstakes Office, {hereinafter designated the Office,] shall [be
the principal government agency for raising) RAISE and [providing] PROVIDE [for]
funds for THE NATIONAL HEALTH INSURANCE PROGRAM (NHIP) {health
programs, medical assistance and services] and charities of national character, and as
such shall have the general powers conferred in [section thirteen of Act Numbered
One thousand four hundred fifty-nine] SECTION 13 OF ACT NUMBERED 1469,
as amended, and shall have the authority:"

. To hold and conduct charity sweepstakes races, lotteries, and other similar

activities, in such frequency and manner, as shall be determined, and subject to such
rules and regulations as shall be promulgated by the Board of Directors.

["B. Subject to the approval of the Minister of Human Settlements, to engage in health
and welfare-related investments, programs, projects and activities which may be
profit-oriented, by itself or in collaboration, association or joint venture with any
person, association, company or entity, whether domestic or foreign, except for the
activities mentioned in the preceding paragraph (A), for the purpose of providing for
permanent and continuing sources of funds for health programs, including the

expansion of existing ones, medical assistance and services, and/or charitable grants:
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Provided, That such investments will not compete with the private sector in areas
where investments are adequate, as may be determined by the National Economic and
Development Authority."]

“{CJB. To undertake any other activity that will enhance its funds generation
operations and funds management capabilities, subject to the same limitations
provided for in the preceding paragraph].

"It shall have, a Board of Directors, hereinafter designated the Board, composed of
five members who shall be appointed, and whose compensation and term of office

shall be fixed, by the President [(Prime Minister)]."

SEC. 2. Section 6 of Republic Act No. 1169, as amended by Batas Pambansa Blg. 42 is

hereby further amended to read as follows:

"SEC. 6 Allocation of Net Receipts. ~ From the gross receipts from the sale of
[sweepstakes] tickets, whether for sweepstakes races, lotteries, or other similar
activities, shall be deducted the printing cost of such tickets, which in no case shall
exceed two percent (2%) of such gross receipts to arrive at the net receipts. The net
receipts shall be allocated as follows:"

“A. Fifty-five percent (55%) shall be set aside as a prize fund for the payment of
prizes, including those for the owners, jockeys of running horses, and sellers of
winning tickets.”

“Prizes not claimed by the public within one year from date of draw shall be
considered forfeited, and shall form part of the charity fund for disposition as stated
below.”

"B. Thirty percent (30%) shall be set aside as contributions to the charity fund from
which the Board of Directors, [in consultation with the Ministry of Human
Settlements] on identified priority programs, needs and requirements in specific
communities and with the approval of the Office of the President [(Prime Minister)],
shall make payments or grants for health programs, including the expansion of
existing ones, medical assistance and services and/or charities of national character,
such as the Philippine National Red Cross, under such policies and subject to such
rules and regulations as the Board may from time to time establish and promulgate:
PROVIDED, THAT SEVENTY PERCENT (70%) OF THE SAID CHARITY
FUND SHALL BE SET ASIDE AS CONTRIBUTIONS TO THE NHIP,
CREATED UNDER REPUBLIC ACT NO. 7875, AS AMENDED, AND

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ADMINISTERED BY THE PHILIPPINE HEALTH INSURANCE

CORPORATION (PHILHEALTH) FOR THE PURPOSE OF ACHIEVING

UNIVERSAL HEALTH CARE COVERAGE AND IMPROVED

PHILHEALTH BENEFIT PACKAGES: PROVIDED, FURTHER, THAT THE

EQUIVALENT AMOUNT SHALL BE INCLUDED IN THE GENERAL

APPROPRIATIONS ACT (GAA) AS A SPECIAL PURPOSE FUND FOR

THE COUNTERPART SHARES OF THE NATIONAL AND LOCAL

GOVERNMENT IN THE NHIP UNDER THE PHILHEALTH [.The Board may

apply part of the contributions to the charity fund to approved investments of the

Office pursuant to Section 1 (B) hereof, but in no case shall such application to

investments exceed ten percent (10%) of the net receipts from the sale of

sweepstakes tickets in any given year].”

"Any property acquired by an institution or organization with funds given to it under

this Act shall not be sold or otherwise disposed of without the approval of the Office

of the President [(Prime Minister)], and that in the event of its dissolution all such

property shall be transferred to and shall automatically become the property of the

Philippine Government."

“C, Fifteen (15%) percent shall be set aside as contributions to the operating

expenses and capital expenditures of the Office.

"Dp, All balances of any funds in the Philippine Charity Sweepstakes Office shall

revert to and form part of the charity fund provided for in paragraph (B) HEREOF,

and shall be subject to disposition as above stated]."

“The disbursements of the allocation herein authorized shall be subject to the usual

auditing rules and regulations.”

SEC. 3. Implementing Rules and Regulations. ~ Within sixty (60) days upon effectivity
of this Act, the PCSO, the PhilHealth and the Department of Budget and Management (DBM)
shall provide the necessary rules and regulations for the proper disposition of the said funds and
the effective implementation of this Act.

SEC. 4. Separability Clause, — If any provision of this Act is subsequently declared
unconstitutional, the validity of the remaining provisions hereof shall remain in full force and

effect.

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SEC. 5. Repealing Clause, — Alll laws, decrees, executive orders, rules and regulations
and other issuances or parts thereof which are inconsistent with this Act are hereby repealed or
modified accordingly.

SEC. 6, Effectivity. — This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in any two (2) newspapers of general circulation.

Approved,

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