SC BLOCKS PHILHEALTH FUND TRANSFER, ORDERS P60B RETURN

The government has returned the P60 billion in Philippine Health Insurance Corp. (Philhealth) funds previously transferred to the National Treasury following a ruling by the Supreme Court (SC) declaring the remittance unconstitutional and in violation of the Universal Health Care Act.

In a statement, PhilHealth spokesman Israel Francis Pargas confirmed the return to the agency and ensured that the funds would help strengthen internal systems, enhance benefit packages and improve the efficiency of service delivery to better access in healthcare services.

President Ferdinand "Bongbong" Marcos said that his decisions regarding to the PhilHealth's funds which he announced in September last year was his administration's top priority to secure better healthcare system.

“We thank the President for his clear directive to utilize these funds to improve healthcare services and reach every Filipino. PhilHealth remains committed to safeguarding public trust by ensuring that every peso is allocated toward enhancing benefits, streamlining systems, and delivering fast, fair and reliable services,” Pargas stated.

The Supreme Court of the Philippines earlier ruled unanimously in favor of returning the unused Philhealth funds declaring void a provision in the 2024 General Appropriations Act (GAA) and a related Department of Finance circular that authorized the remittance.

The high court said that PhilHealth reserve funds are protected under Section 11 of the Universal Health Care Act, which prohibits the transfer of such funds to the national government and instead requires excess reserves to be used to improve benefits and reduce member contributions.

It also ruled that Congress cannot amend or override substantive laws such as the Universal Health Care Act through provisions inserted in the annual national budget.