SC urged to reject P89.9B PhilHealth fund transfer

FEU Advocate
February 07, 2025 20:31


By Shayne Elizabeth T. Flores

As oral arguments over the petitions questioning the P89.9-billion PhilHealth fund transfer to the National Treasury commence, various health workers and advocates called on the Supreme Court (SC) to denounce the transfer as ‘unjust’ in a protest action held in front of SC last February 4.

According to the Department of Finance’s (DOF) issued Circular No. 003-2024 and the General Appropriations Act of 2024, PhilHealth’s ‘excess funds’ must be remitted to the national budget’s unprogrammed appropriations.

Several complainants, including Senator Koko Pimentel, Bayan Muna Party-list, and 1Sambayan Coalition, filed petitions to the SC opposing the fund transfer. 

The petitioners cited the violation of Section 11 of Republic Act No. 11223, or the Universal Health Care (UHC) Law, which stipulates that PhilHealth’s reserve funds cannot be allocated to the national government’s general fund. 

This allegation was affirmed by Lazaro-Javier upon the conclusion of the oral arguments, stating that PhilHealth is “not exactly complying” with UHC’s provision.

Moreover, in response to Deputy Treasurer Eduardo Anthony Mariño III’s assertion of PhilHealth’s financial security, Associate Justice Amy Lazaro-Javier countered that the insurance company was actually “bankrupt.”

“I don’t know if you’re aware of that. You ought to be aware. And COA [Commission on Audit] has repeatedly highlighted that in its letters to PhilHealth. And then COA said that for many years, at least three years (2021, 2022, 2023), the reserve fund of PhilHealth is much much less than its actuarial fund,” she said.

PhilHealth did not respond to the claim while Finance Secretary Ralph Recto dismissed it, stating that COA did not specifically label the insurance company as bankrupt.

In his speech, All UP Workers Union-Manila/Philippine General Hospital (PGH) Vice President Benjie Santos Jr. criticized the excess funds as indication of budget misuse.

Bakit nagkaroon ng excess fund? Hindi [nila kasi] ginagamit du’n sa serbisyong dapat ibinibigay ng galing dito sa PhilHealth (Why was there excess funds? It is because they do not utilize it in PhilHealth services),” he claimed.

According to Health Alliance for Democracy (HEAD) Chairperson Dr. Edelina Dela Paz, the government intends to utilize the excess funds in preparation for the upcoming midterm elections.

Malapit na po ang eleksiyon at naghahanap po sila ng (The election is near and they are looking for) so-called excess funds for their own fund needs, which is funding the election,” she stated.

Moreover, the protesters noted the Philippines’ insufficient healthcare system, citing the consistent long queues of patients at PGH seeking to reduce their medical expenses through PhilHealth. On the other hand, they argued that accessible and affordable healthcare remains elusive for people in rural areas.

While health workers strive to provide quality service to citizens, Santos claimed that their efforts are often compromised by the state’s mismanagement of finances.

Bilang mga manggagawang pangkalusugan, umaasa rin tayo at lagi ay nasa isip nating magbigay ng magandang serbisyo pero paano natin ito magagawa kung ang pondo na para sa kanila ay mismong gobyerno ay kung saan-saan dinadala? (As health workers, we also hope to provide good service but how can we do this if the allocated funding is hastily utilized by the government?)” he stressed.

Furthermore, Makabayan senatorial candidate and Filipino Nurses United Secretary-General Jocelyn Andamo underlined PhilHealth’s nature as a business that imposes financial strain on its beneficiaries in exchange for ‘meager’ services.

Ang PhilHealth ay isang negosyo na itinayo ng ating pamahalaan kaya bawat isa sa atin ay pinagkukuwartahan pa at ginagatasan dahil sa napakaliit ng benepisyong nakukuha natin (PhilHealth is a business established by our government, which is why we are being milked due to the small benefit we get),” she claimed.

Despite this, Andamo remained firm on supporting PhilHealth’s budget security, citing citizens’ significant reliance on it and the government’s obligation to their health.

Santos also asserted that Filipinos are entitled to maximize Philhealth’s funds for their benefit, given their major contributions. Hence, the money should not be kept by the government.

Meanwhile, Dela Paz argued that PhilHealth should be abolished altogether in the long run, as it breeds corruption, with government officials allocating its funds to their pork barrel. Instead, healthcare funds should be directed straight into the public health system. 

Ibigay ng diretso sa public health system para mapalakas natin ang public health system at hindi kailangan mamalimos or manghingi sa ano pa mang mga ahensiya. Dapat ang lahat ng public health centers, public hospitals, public health facilities ay pinopondohan ng gobyerno dahil responsibilidad ito at karapatan ng mamamayan ang magkaroon ng mahusay na kalusugan,” she emphasized.

PhilHealth was allocated zero subsidy in the recently passed P6.325-trillion national budget for 2025.

The insurance company assured the public of the sufficiency of its funds amid benefit concerns, citing a surplus of P144 billion and a total reserve of P281 billion.

Meanwhile, the SC oral arguments will continue on February 25.

(Photo by Shayne Elizabeth T. Flores/FEU Advocate)