Government lawyers defending the Philippine Health Insurance Corporation (PhilHealth) before the Supreme Court argued that the agency has received more funds through subsidies under the General Appropriations Act (GAA) than it would have from sin tax revenues.

Government Corporate Counsel Solomon M. Hermosura made the statement during the recent third round of oral arguments in the consolidated petitions questioning the constitutionality of PhilHealth’s excess fund transfers.

“PhilHealth has not been actually disadvantaged … PhilHealth has actually been receiving subsidy from the GAA more than what it would have received under its allocation attributed from sin taxes, Your Honor,” Hermosura said.

Official data indicates that from 2014 to 2024, PhilHealth received P635.36 billion in subsidies from the GAA, exceeding the P534.33 billion it received from sin tax allocations. Records also reportedly show that PhilHealth did not seek additional fund releases during that period.

Hermosura stressed that this reflects the government’s commitment to universal health care.

Citing Section 37 of Republic Act 11223, the Universal Health Care (UHC) Act of 2019, Hermosura said the law explicitly states that the required funding “shall be included in the GAA and shall be appropriated under the DoH and national government subsidy to PhilHealth” -- a provision he argued reinforces Congress’ constitutional power of the purse.

He also cited that the law allows the Department of Health (DoH) and PhilHealth to request supplemental funds from Congress to meet UHC milestones.

Solicitor General Menardo I. Guevarra supported this interpretation, telling the High Court that the law mandates all sources of UHC funding -- including sin taxes -- must go to the general fund before being appropriated by Congress.

“Your Honor, it seems to be that all of the sources of funding, including those arising from the sin taxes, will have to go to the general fund and to be eventually appropriated by Congress under the DOH and national government subsidies to PhilHealth … That is my understanding, Your Honor,” Guevarra said.

“It is not the same as this law creating or providing for the creation of a special trust fund like the Coco Levy Trust Fund, which is set apart from the general fund of the national treasury,” he added.