MANILA (UPDATE) - The Philippine Health Insurance Corporation (PhilHealth) chief has denied a report which claimed the state firm's funds will run out in 10 months.

Alex Padilla, president and chief executive of PhilHealth, said the agency has enough money to cover bigger payouts.

"We would like to clarify some news reports that came out today that might have caused panic among our members, especially where the stability of the health insurance funds is concerned. PhilHealth’s finances are as robust, healthy and substantial as ever," Padilla said in a statement.

PhilHealth board member Eddie Dorotan was earlier quoted in a Philippine News Agency (PNA) report as saying PhilHealth lost P1 billion last year after total collections of P96 billion failed to cover P97 billion of payment benefits to PhilHealth claimants.

But Padilla clarified that PhilHealth still has more than P128 billion in reserves to cover the bigger payouts in 2015 and in the coming years.

"I have spoken to [PhilHealth board member] Mr. Eddie Dorotan and he said he was misquoted. Let me just say that PhilHealth has a robust P128.95 billion in reserves,” Padilla told ANC.

Padilla also said that while PhilHealth paid P1 billion more than what it collected in premium contributions last year, the agency gained about P7 billion from investment income, resulting in positive numbers.

"Thus, there is no reason for our members and other stakeholders to worry about our capacity to meet our obligations," he said.

Padilla added that the reserve fund of PhilHealth has been growing steadily from about P112 billion in 2012 to P128 billion in 2015.

"We are mandated to maintain a reserve fund level equivalent to two years so that we can readily address our members’ needs should any eventuality happen. While other social protection programs maintain probably higher levels of reserve funds, we operate on a pay-as-you-go system where we immediately translate what we collect into benefit payments for our members," he said.

In the last five years, PhilHealth said there has been a steady growth in its benefit payments to its members.

PhilHealth said it paid about P34 billion in benefit claims in 2011; P44 billion in 2012; P55 billion in 2013; P77 billion in 2014; and P97 billion in 2015.

"We appeal to our media partners to carefully understand how the National Health Insurance Program (NHIP) works so that our members are constantly assured of PhilHealth’s capability to keep up with its commitment to the 93 million strong Filipinos who rely on the NHIP for their health coverage," Padilla said.