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‘This decision ensures that PhilHealth funds remain exclusively for healthcare services and are protected from diversion,’ the petitioners say
MANILA, Philippines – Petitioners lauded on Friday, December 5, the Supreme Court’s (SC) ruling, which ordered the return of the P60-billion remitted funds to the Philippine Health Insurance Corporation (PhilHealth).
“This decision ensures that PhilHealth funds remain exclusively for healthcare services and are protected from diversion,” the petitioners said in a statement. The petitioners include former senator Koko Pimentel, Bayan Muna leaders, 1Sambayan coalition, and labor and medical groups.
“This ruling is a win for every Filipino who relies on an adequately funded and functioning PhilHealth,” they added. “We are grateful that the Supreme Court affirmed that public health funds must be safeguarded, transparent, and used solely for the people’s benefit.”
The petitions stemmed from a provision in the 2024 General Appropriations Act (GAA), which stated that “excess” funds from government-owned or -controlled corporations such as PhilHealth shall be transferred to the Bureau of the Treasury to fund unprogrammed appropriations.
The Department of Finance (DOF), which issued a circular on the provision implementation, ordered PhilHealth to transfer P89.9 billion of its “excess” funds.
The state insurer remitted P60 billion in tranches before the SC issued a temporary restraining order in response to petitions seeking to block the DOF’s directive.
In its ruling, the SC declared the provision unconstitutional.
Executive Secretary Ralph Recto, the DOF chief when the circular was issued, said they just “complied with the congressional mandate under the 2024 GAA.”
“We believed then, and still believe, that the directive was a common-sense approach to optimize government coffers without resorting to additional borrowing or new taxes,” Recto said, noting that they will abide by the SC decision.
“We also stress that PhilHealth’s ability to deliver services was never impaired by the fund transfer and no member contributions were taken,” he added.
Meanwhile, Presidential Communications Office Secretary Dave Gomez said “the Office of the Solicitor General will review the ruling and decide on the appropriate course of action to take, including the filing of a motion for reconsideration.”
Senator Sherwin Gatchalian, the Senate finance committee chairman, said the P60 billion is already included in the proposed 2026 budget of PhilHealth.
“The 2026 budget proposal contains a P60-[billion] allocation on top of a P53-[billion] regular funding for PhilHealth. The P60 [billion] fully complies with the SC ruling,” he said.
Gomez said the House of Representatives also included the fund restoration in its version of the budget bill.
The Department of Health, the agency to which PhilHealth is attached, said it is “committed to implementing the Universal Health Care Act through sound and sustainable health financing.” – Rappler.com
