During a heated House Committee on Appropriations oversight hearing, House Deputy Majority Leader and Iloilo 1st District Rep. Janette Garin confronted former Department of Health (DOH) Secretary Francisco Duque III over the initial high costs of COVID-19 test kits during the pandemic’s early stages.

Garin, herself a former health secretary, criticized the early pricing of COVID-19 tests at a steep P8,150, despite the World Health Organization’s (WHO) suggested range of P2,000 to P2,500.

“So, the others took advantage because they already gave the price of P8,150…I pity the people who thought it was that expensive,” Garin stated.

Duque explained that in early 2020, the Philippine Health Insurance Corporation (PhilHealth) had considered the WHO formula when setting testing costs.

“In the initial stage of the pandemic, where there was a scant supply of test kits, the testing cost was clearly very high. But as soon as time went by and supplies and prices started to stabilize, then the DOH, with PhilHealth, started to make the corresponding adjustments,” Duque noted.

PhilHealth President Emmanuel Ledesma supported this, detailing the price drop from P8,150 on April 14, 2020, to P3,409 by June 25, 2020, P2,800 by November 30, 2020, P2,287 by May 26, 2021, and P2,450 by November 30, 2021.

However, Garin attributed the price reductions to persistent legislative pressure, not just market adjustments.

“The price kept dropping when we repeatedly knocked on your office during budget deliberations because P8,150 per COVID test is exorbitant,” she argued.

Garin emphasized that private sector testing did not face similar stock issues, suggesting the high costs were driven by other factors.

“If there is no stock, why can the private sector provide tests? Because the issue here is the price. The issue here is PhilHealth paying P8,150 per COVID testing and that became the benchmark,” she said, accusing PhilHealth of exploiting patients amid the pandemic.

Duque maintained that the initial high costs were due to supply shortages.

“The important thing is, you would see the downward trajectory of the testing costs. As soon as supplies became more available and prices began to stabilize, it’s not as if the P8,000 became a steady cost,” he insisted.

Meanwhile, former PhilHealth President Ricardo Morales described the early high costs as a seller’s market condition, where limited suppliers dictated prices.

Garin countered, arguing that the government and international bodies typically regulate such markets during health crises. “If there’s only one laboratory, the more that PhilHealth should have been prudent not to waste money,” she said.

Additionally, during the hearing, Duque disclosed that former President Rodrigo Duterte directed the transfer of PHP47.6 billion from the DOH to the Procurement Service of the Department of Budget and Management (PS-DBM) for COVID-19 supplies in 2020.

This transfer, which Duque confirmed, has led to graft charges against him and former DBM Undersecretary Christopher Lao, following findings of grave misconduct and gross neglect of duty by the Office of the Ombudsman.

Rep. France Castro and Garin pressed Duque for clarity on the fund transfer’s official instructions, with Garin expressing surprise at the reliance on public addresses for such significant decisions. “Officially there are actually official notices or instructions,” Garin remarked.