Groups petitioning against the Department of Finance (DoF) directive to sweep the budget of “excess funds” said the recent temporary restraining order (TRO) the Supreme Court issued on the transfer of Philippine Health Insurance Corp. (PhilHealth) excess funds to the national treasury covered P59.9 billion and not only the unremitted P29.9 billion.
In its decision, the High Tribunal indicated that it decided to “grant the motion for the issuance of a temporary restraining order pending the scheduled oral arguments on 14 January 2025 filed by the counsel of the petitioners in GR 275405 (Bayan Muna vs President Marcos et al.) and enjoining the respondents from transferring the remaining balance of P59.9 billion of PhilHealth funds.”
“We would like to clarify that what was restrained by the Supreme Court was not only the remaining P29.9 billion but also the P30 billion supposedly transferred on 16 October 2024, or a total of P59.9 billion,” according to the petitioners.
Thus, the DoF should be required to be “faithful” to the SC decision and return the P30 billion to PhilHealth if it “has been transferred to the National Treasury.”
According to budget watchdogs, the reallocation of funds from government-owned and -controlled corporations (GOCC) was provided under the 2024 General Appropriations Act (GAA) through a provision that was belatedly included during the bicameral conference committee meeting.
It allowed the Department of Finance to transfer idle GOCC funds to the National Treasury.
In that meeting, some P200 billion worth of regular projects of different agencies were set aside to make way for the pet projects of legislators.
The bumped-off items were lumped under unprogrammed projects that the DoF needed to source funds for.
“P2 billion was allocated to healthcare workers but more than P200 billion was allotted for their favorite projects. That is a mere one percent of what they allocated for juicy infra projects,” according to the TRO petitioners.
“We demand a thorough audit of all expenditures which used PhilHealth funds, and the accounting of all other funds used in these UA projects,” they added.
In a 2022 report, the Commission on Audit (CoA) flagged the use of PhilHealth funds for purposes other than the health benefits of its members.
“The ultimate objective of Republic Act 11223, otherwise known as the Universal Health Care (UHC) Act, is to ensure that all Filipinos have adequate access to quality and affordable health care goods and services and are protected against financial risk,” the CoA said.
P89.9B pinpointed in 2022 report
It added, however, that the objective may not be fully achieved due to the management of the PhilHealth Reserve Fund which did not fully comply with the Act, “resulting in the planned return of the P89.9 billion in unutilized funds to the Bureau of the Treasury, thus depriving the members of adequate and additional benefit coverage.”
PhilHealth stressed its sustainable implementation of health benefits under its president and chief executive officer Emmanuel Ledesma Jr. in response to the TRO.
“Mr. Ledesma’s leadership has positioned PhilHealth on a trajectory toward long-term, sustainable healthcare reform and we are committed to continuing this vital work for the benefit of our members and the nation as a whole,” PhilHealth spokesperson Dr. Israel Francis Pargas told Daily Tribune in an email.
Senator JV Ejercito echoed lawmakers’ questions to the insurer as to why it accumulated unused funds amounting to P89.9 billion in the wake of the Supreme Court order.
Surplus amid want
“Why would PhilHealth declare an excess fund of P89.9 billion while many Filipinos are struggling to fulfill their medical bills?” Ejercito asked.
PhilHealth has yet to give a more specific reason for the huge unused funds. Pargas, however, said PhilHealth remained open to criticism and suggestions on how to improve its services.
“We acknowledge the importance of robust oversight and welcome constructive feedback,” he said.
In a media briefing last 7 October, Ledesma declined to answer questions on the unused funds, saying that PhilHealth’s legal team had been coordinating with the Supreme Court and was waiting for its decision.
He also said that PhilHealth had been working relentlessly to accelerate the delivery of more benefits to its members, including a possible expansion in benefits of up to 50 percent this month or before year-end.
The state insurer had increased its benefits coverage for nearly all diseases by 30 percent in February after raising members’ contributions from 4 percent to 5 percent.
PhilHealth’s recent improvements include higher benefits for breast cancer patients at P1.4 million from P100,000 and a malnutrition program for children that offers benefits of up to P17,000.