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SC justice ordered return of excess funds to PhilHealth
By Nidz Godino
“We cannot close our eyes for the past years na hindi nabigay in benefits,” Supreme Court Associate Justice Antonio Kho said after his interpolation said P60 billion in excess funds transferred from Philippine Health Insurance Corp. (PhilHealth) to National Treasury should be returned to state insurance provider.
During third round of oral arguments on the petition challenging transfer of PhilHealth’s excess funds, Kho argued if PhilHealth cannot utilize its funds, money should instead be allocated to increase contributors’ benefits.
He also criticized government’s allocation practices, emphasizing that if taxes collected for PhilHealth are not fully transmitted, remaining balance should be released.
“So in that case maybe PhilHealth can already request the president to return the money, P60 billion that was transmitted to government for unprogrammed funds, return that to PhilHealth…for PhilHealth to expand its benefits, hire more people to answer for needs of health of our people,” he added.
He also questioned whether PhilHealth considers taxes allocated by Congress for subsidies when making its budget requests.
“So therefore, when you come up with your budget request for subsidy, you don’t actually consider taxes being collected Congress passed for purposes of subsidy for indirect contributors?” Kho asked during his interpellation with Health Assistant Secretary Albert Domingo.
Domingo then responded with: “Your honor, budget principles require that it’s needs-based… if we follow it based on projected fund ceiling or availability, it might not match certain needs.”
In response, Kho expressed concern that PhilHealth was restricting its funding, suggesting that state insurer was arbitrarily setting limits without considering subsidies allocated by Congress through collected taxes.
“Now, when you request money for subsidy, are you saying you won’t take that into account…will you create your own formula… because you have limited understanding, there’s limited need of our people for health,” Kho asked.
According to Domingo, despite transfer of excess funds to National Treasury, PhilHealth’s ability to provide benefits remains secure.
“Your Honor, if it pleases court, Section 58, sovereign guarantee, even without this maneuver of P89.9 billion, government can and always will increase benefits,” Domingo said.
The health assistant secretary cited Section 58 of National Health Insurance Act, ensures financial viability of National Health Insurance Program administered by PhilHealth.
Domingo also argued ongoing legal proceedings were crucial as they reinforced “use-it-or-lose-it” principle, commonly applied to national government agencies to encourage fund utilization.
He emphasized that government-owned and controlled corporations such as PhilHealth do not operate under same incentive.
“If case is allowed to proceed, if transfer is allowed to proceed, it is use-it or lose-it signal, all national government agencies have, so that we will use our funds… GOCCs like PhilHealth do not have that signal,” he said.
Supreme Court previously issued restraining order on Oct. 29, 2024, halting transfer of remaining P29.9 billion in unused PhilHealth funds.
Earlier transfers included P20 billion on May 10, P10 billion on August 21, and P30 billion on October 16, prompting several individuals to file petitions challenging legality of fund transfers.
Oral arguments for petitions will continue on April 29.
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