The transfer of idle Philippine Health Insurance Corporation (PhilHealth) funds to the Bureau of Treasury serves as a "strong signal" for the state health insurer to improve its services and maximize benefits for members, a Department of Health (DoH) official said.

DoH Assistant Secretary Dr. Albert Francis Domingo made the statement during a court hearing, responding to questions about the government's transfer of P60 billion from PhilHealth.

Domingo told Supreme Court Associate Justice Antonio Kho Jr. that the transfer signaled the need for PhilHealth to enhance its benefit packages.

"The signal... that this litigation gave is a strong signal for it to do so," Domingo said.

He stressed the move compels PhilHealth to utilize its funds efficiently rather than allowing them to remain idle.

"If the transfer is allowed to proceed, it is a use-it or lose-it signal," Domingo said, adding that government agencies have this stimulus, but government-owned and controlled corporations (GOCCs) like PhilHealth previously did not.

He said that prior to the current PhilHealth leadership, there was a perception that earmarked funds would always be available, regardless of efficiency.

"They think... that just because there is an earmark... that they will get the money and there is no stimulus for them to actually increase the benefits," Domingo said.

Despite the fund transfer, PhilHealth has expanded its benefit offerings in the past year.

Coverage for hemodialysis increased to 156 sessions annually, up from 90. Mental health services were expanded, and financial support for critical illnesses, including cancer and kidney transplants, was increased.

New outpatient packages now cover primary care, laboratory tests, and preventive healthcare services.

PhilHealth also enhanced its Z-benefit packages for catastrophic illnesses, including heart disease and stroke, and recently announced a new package for heart valve repair and replacement, with coverage up to P1 million.