The Supreme Court heard oral arguments Tuesday on the constitutionality of the Philippine Health Insurance Corporation’s (PhilHealth) transfer of excess funds to the national government. The case challenges the legal basis for remitting surplus funds to the Bureau of the Treasury (BTr) to support priority public projects, including health, infrastructure, and social development initiatives.
The case involves key government stakeholders, including House of Representatives Speaker Ferdinand Martin Romualdez, Senate President Francis Escudero, Department of Finance (DOF) Secretary Ralph Recto, Executive Secretary Lucas P. Bersamin, and PhilHealth president Emmanuel R. Ledesma, Jr. They are defending the remittance of over P60 billion in excess funds from PhilHealth to finance urgent national projects, as mandated in the 2024 General Appropriations Act (GAA).
The remittance of funds follows the government’s fiscal consolidation plan outlined in the Medium-Term Fiscal Framework (MTFF), which aims to optimize resource utilization for economic growth. The DOF reviewed PhilHealth’s financial statements, revealing P183.1 billion in accumulated unused funds. After careful deliberation, the DOF transferred P89.9 billion, with about 78 percent directed toward vital health and social services, including pandemic-related health benefits, medical assistance programs, and infrastructure for healthcare facilities.
Critics argue the move may undermine PhilHealth’s long-term financial sustainability, but government officials assert that the funds’ redirection will not affect its ability to provide services to members. PhilHealth remains financially robust, with total assets nearing P598 billion by September 2024, and continues to expand its benefit packages.
The outcome of the Supreme Court’s ruling will have significant implications for fiscal policy, particularly regarding the authority to redirect funds from government-owned and controlled corporations (GOCCs) to the BTr.
