OSG accepts SC ruling on PhilHealth funds

The Office of the Solicitor General (OSG) said Saturday it will no longer seek reconsideration of the Supreme Court’s landmark ruling ordering the return of P60 billion in PhilHealth funds and striking down provisions in the 2024 General Appropriations Act (GAA) and Department of Finance (DOF) Circular No. 003-2024 that the Court said undermined the Universal Healthcare Act.

In a statement dated 26 December 2025, Solicitor General Darlene Marie B. Berberabe said the executive branch “accepts [the Court’s] guidance” and “moves forward with full respect for the Court’s authority and wisdom.”

Berberabe said the branches of government may at times differ in their approaches to public policy, particularly in managing limited fiscal space, but stressed that all remain bound by the Constitution.

“The Supreme Court has now clarified the constitutional path,” Berberabe said.

Earlier, the Supreme Court ruled that the reallocation of PhilHealth’s reserve funds through Special Provision 1B of the 2024 GAA and DOF Circular No. 003-2024 violated Section 11 of the Universal Healthcare Act and the Sin Tax Law, which earmarks excise tax revenues exclusively for universal healthcare.

The Court ordered the P60 billion returned to PhilHealth through the 2026 GAA, permanently barred the transfer of the remaining P29.9 billion in reserve funds, and declared the questioned provisions and circular void.

Supreme Court spokesperson Camille Ting clarified that the ruling did not address criminal liability for any government official, including the Finance Secretary, noting that the petition only questioned whether there was grave abuse of discretion in issuing the provisions.

By opting not to challenge the decision, the OSG signaled the executive branch’s compliance with the Supreme Court’s ruling.