February 3, 2005

COA RESOLUTION NO. 2005-001

SUBJECT : Prohibition from Securing Health Care Insurance from Private Insurance Agencies

WHEREAS, under existing Civil Service Law, rules and regulations, it is prescribed that there shall
be a health program in the government aimed at improving the working conditions of the employees;
WHEREAS, such program is provided thru the Philippine Health Insurance Corporation which is the
government arm for insuring the availability of funds to extend hospitalization and sickness benefits to
public officials and employees;
WHEREAS, the government already provides for the health insurance of its employees by
appropriating funds therefor in the General Appropriations Act;
WHEREAS, procurement of another health insurance by government agencies from private health
insurance companies is a disbursement of public funds for the same purpose and must be viewed as a
form of additional allowance and compensation;
WHEREAS, by constitutional mandate, no elective or appointive public officer or employee shall
receive additional, double, or indirect compensation, unless specifically authorized by law (Section 8,
Article IX-B, 1987 Constitution);
WHEREAS, this Commission is constitutionally authorized to promulgate accounting and auditing
rules and regulations for the prevention and disallowance of irregular, unnecessary, excessive,
extravagant or unconscionable expenditures, or uses of government funds;
NOW, THEREFORE, BE IT RESOLVED as it is, hereby RESOLVED, that the procurement of private
health insurance by any agency or instrumentality of the government is an irregular expenditure and
constitutes unnecessary use of public funds which cannot be countenanced by this Commission;
BE IT FURTHER RESOLVED that violation of this Resolution shall cause the disallowance of the
corresponding disbursement of funds and the heads of the agencies or instrumentalities involved
including government owned and/or controlled corporations and those officials participating therein shall
be held personally liable therefor.
This Resolution takes effect immediately.
Quezon City, February 3, 2005.

(SGD.) GUILLERMO N. CARAGUE

Chairman

(SGD.) EMMANUEL M. DALMAN

Commissioner

(SGD.) REYNALDO A. VILLAR

Commissioner