Finance Secretary Ralph Recto told the Supreme Court that the reallocation of P60 billion in unused PhilHealth subsidies strengthened, rather than undermined, government-mandated health services.

Recto argued that the government’s decision to utilize the unused funds did not neglect its mandate to prioritize public health.

“The P60 billion that was returned didn’t vanish -- it paid frontliners, built hospitals, and gave the poor access to medicine. Every centavo remitted was converted into service. That is fiscal justice,” Recto said.

“We submit that the right to health isn’t about protecting idle funds. It is about delivering actual care. Because when we talk about the right to health, it is not solely about PhilHealth,” he added.

Recto explained the reallocated funds were used for healthcare initiatives, including P27.45 billion for unpaid Covid-19 frontliner allowances; P10 billion for social health programs aiding the poor; P3.37 billion for constructing three new Department of Health (DoH) facilities; P4.10 billion for upgrading existing DoH health infrastructure; and P1.6 billion for the Health Facilities Enhancement Program.

An additional P13 billion was used for counterpart financing of foreign-assisted projects to improve healthcare access in underserved areas and promote food security.

Recto clarified that only unused government subsidies from 2021 to 2023 were reallocated, not member contributions. He said PhilHealth remains financially sound with P498 billion in cash reserves as of last year.

He argued that allowing PhilHealth funds to remain idle would deny benefits to the public. “Only unused government subsidies were returned. It is our view that unused funds are denied benefits. That, we contend, is the real harm.”

“It bears stressing that not a single centavo meant for the members’ coverage was touched. Not a centavo of benefits was compromised. PhilHealth’s daily operations and benefit packages remain intact. They will not be disrupted but will even be improved,” Recto told the magistrates.

Recto highlighted PhilHealth’s recent improvements to benefit packages, including increased coverage for heart disease treatments, kidney transplants, peritoneal dialysis, and a 50 percent increase in nearly all case rates. Preventive dental services are also now covered.