Excess funds held by the Philippine Health Insurance Corporation (PhilHealth) represent a missed opportunity for Filipinos to access timely healthcare services, according to a prominent economist.

This, as Former University of the Philippines School of Economics dean and professor emeritus Orville Jose Solon testified as an amicus curiae during oral arguments last 4 February at the Supreme Court.

He said the accumulation of unused funds indicates inefficiencies in PhilHealth's fund utilization.

"Excess funds obviously represent not just the power to purchase more... it also represents a missed opportunity to pay for services," Solon said.

He also stressed that public funds should be used efficiently, not left idle. "From an economic perspective... you use it or you lose it," he said.

Solon argued that if the Supreme Court decides the excess funds should remain with PhilHealth, it should be contingent on reforms to ensure efficient spending. Without these changes, he warned, the funds would remain underutilized, delaying improvements to the healthcare system.

He cited several factors contributing to the accumulation of unspent funds which include lack of a strong administrative information system; insufficient actuarial technical foundation and failure to link operating budgets with performance and benefit delivery.

He added that there are also disparities in healthcare supply across the country and a fragmented healthcare management.

Solon stressed the need for significant reforms within PhilHealth, regardless of the court's decision. These reforms should include strengthening the actuarial department, aligning budgets with direct benefit delivery, and adopting global budgeting practices to expand healthcare access in underserved areas.

"Public funds are very scarce, and it costs a lot of money to tax people, which has welfare effects—so they have to be handled carefully," said Solon, adding that the presence of excess funds, and how they are resolved, reflects PhilHealth's performance.