A former Finance secretary defended the transfer of idle funds from the Philippine Health Insurance Corporation (PhilHealth) to the Bureau of Treasury (BTr), arguing before the Supreme Court that the move allowed the government to fund crucial public programs without jeopardizing the state insurer’s services.

Speaking as an amicus curiae during recent oral arguments, former Finance Secretary Margarito Teves asserted that the national government is better positioned to utilize these resources effectively.

“Returning the P89.9 billion in idle PhilHealth funds will not hamper its ability to provide services to all its members, including indigents and senior citizens,” Teves told the magistrates. “PhilHealth remains in a strong financial position, even with the return of this fund balance.”

“It has sufficient resources not only to continue covering the benefits of all its members, including the indigent population, but also introduce better packages,” he added.

As of the third quarter of 2024, PhilHealth’s total assets stood at P682.2 billion, with P510 billion classified as liquid, which Teves said is more than enough to cover existing and future obligations.

Teves stressed that reallocating idle public funds is a sound fiscal strategy, citing similar measures taken by past administrations and cited that the Ramos administration required all government offices and agencies to transfer bank deposits to the BTr, while the Arroyo administration reviewed agency cash balances and the need to maintain trust and special funds.

The Duterte administration, on the other hand, reallocated idle resources to fund Covid-19 emergency response under Bayanihan 1 and 2 laws.

Teves explained that the current Marcos administration, still managing the pandemic’s fiscal impact, must make prudent financial decisions to maximize resources and manage the country’s growing debt.

“The national government, at this stage, Your Honors, is in a better position to spend the P89.9 billion productively for government projects and programs,” Teves said. He gave examples such as building health facilities, purchasing medical equipment, and funding education, nutrition, and infrastructure projects.

He also assured the court that the government has the flexibility to restore or increase PhilHealth subsidies in the future.