Legarda asserts P60-B returned funds should have been diverted from PhilHealth; calls for P220.4B addt'l return

Senator Loren Legarda on Friday took a swipe at the administration following the return of the P60 billion to the state-run PhilHealth from the national treasury, arguing that public funds intended for healthcare should not have been diverted in the first place. 

The statement came on the heels of reports that PhilHealth had already received the entire P60 billion, or the so-called “excess funds” taken from the state health insurer by virtue of Memorandum Circular 003-2024, signed by then Finance Secretary Ralph Recto.

“These are funds for the health of the Filipino people. They are not excess funds that can be diverted while hospitals lack resources, health workers are overburdened, and patients are forced to pay out of pocket or postpone treatment,” Legarda lamented.

In December last year, the Supreme Court ruled that the transfer of the PhilHealth funds to the national treasury was “unconstitutional,” prompting the return of the P60 billion, which was transferred in three tranches in May, August, and October 2024. 

The circular mandated the transfer of excess funds of government-owned or -controlled corporations to the Bureau of the Treasury to fund the government’s projects under the unprogrammed appropriations—the so-called standby funds derided by critics as a conduit for corruption. 

Under the circular, the amount of PhilHealth funds to be transferred was initially set at P89.9 billion. However, a temporary restraining order issued by the SC—resulting from petitions filed by several groups—blocked the transfer of the last tranche amounting to P29.9 billion.

According to Legarda, there is at least  P220.4 billion in funds intended for health care that the government must swiftly release on top of the P60 billion from PhilHealth.

Of the amount, she said P113.44 billion comes from sin tax revenues on tobacco, alcohol, and sweetened beverages from 2023 to 2025, which are intended for PhilHealth under the law. 

Meanwhile, P106.95 billion comes from gaming revenues from the PCSO and PAGCOR, which Legarda argued must be returned by the government for public healthcare use.

“Universal health care cannot be implemented through partial releases, delayed remittances, and after-the-fact corrections. The government must now release the remaining funds legally due to PhilHealth. Every peso intended for health must reach the people it was meant to serve,” Legarda asserted.

Aside from the P60 billion, a whopping  P107.23 billion in Philippine Deposit Insurance Corp. (PDIC) funds was also remitted to the national treasury pursuant ot the DOF circular. 

Former SC associate justice Antonio Carpio, who is also among the petitioners contesting the transfer of PhilHealth funds, has called for the return of the PDIC funds, citing the high court’s ruling.

Carpio warned that they will seek the SC’s intervention anew should now DOF Secretary Frederick Go remain headstrong in insisting that the court’s decision ordering the return of the P60 billion in PhilHealth funds does not apply to the PDIC funds. 

The SC declared as “void” the transfer of the PhilHealth funds, citing “grave abuse of discretion” and multiple violations of the Constitution.

Reports later revealed that the Marcos administration used the UA to bankroll infrastructure programs, including flood control projects, now under scrutiny for alleged large-scale corruption, involving lawmakers and DPWH officials, among others.