SC asked to stop diversion of P89.9-B excess PhilHealth funds

A petition seeking to block the diversion of P89.9-billion excess funds of the Philippine Health Insurance Corporation (PhilHealth) has reached the Supreme Court.

In a 38-page petition, the Philippine Medical Association (PMA), Senator Aquilino "Koko" Pimentel III, and other petitioners asked the high court to issue a temporary restraining order (TRO) and/or a writ of preliminary injunction to prevent the transfer of funds from PhilHealth to the national treasury.

They also asked the Court to undo and restrain the effects of Department of Finance (DOF) Circular 003-2024, and the assailed provision in the General Appropriations Act (GAA) 2024 pending the resolution of the case.

The petitioners also asked the Court to order the DOF to return to PhilHealth any funds that may have been transferred following the circular.

Of the P89.9 billion, P20 billion has been transmitted to the national treasury while the rest will be released on a staggered basis, Finance Secretary Ralph Recto said last month.

Meanwhile, the petitioners asked the Court to issue a writ of prohibition directing the DOF and all other agencies from implementing the circular.

"Redirecting these vital funds away from healthcare is a betrayal of the most vulnerable among us," the petition read.

"The future of millions of Filipinos hangs in the balance, and the Petitioners implore the Honorable Supreme Court to act now and protect the citizens' right to health and the promise of a better future," it added.

Aside from the PMA and Pimentel, the petitioners also include former finance undersecretary Cielo Magno, Dr. Ma. Dominga Padilla, and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa, among others.

Meanwhile, the respondents are Recto, the House of Representatives, represented by Speaker Ferdinand Martin Romualdez; Senate of the Republic of the Philippines, represented by Senate President Francis Chiz Escudero; Executive Secretary Lucas Bersamin; and PhilHealth, represented by its President Emmanuel Ledesma Jr.

The DOF has defended the utilization of unused and idle funds of government corporations, saying this was "more prudent" than borrowing or imposing taxes.

For his part, Recto said his office has yet to receive a copy of the petition.

“The Department of Finance (DOF) is ready to answer any question on the legality of DOF Department Circular 003-2024,” Recto said.

He said the circular is the implementation of a congressional order under Section 53 of the General Appropriations Act.

"As I stated before the Senate, I believe that public health deserves the full support of the government—a position which I have maintained in my three decades in Congress," he said.

"I want to make it clear that I never opposed any recommendations to reduce PhilHealth member contributions," he added.

Recto also stressed that President Ferdinand "Bongbong" Marcos Jr. has already promised that PhilHealth would enhance its benefits.

In a briefing after Marcos' third State of the Nation Address (SONA), Health Secretary Ted Herbosa said Recto had "promised" that the unused funds would be utilized for health-related programs. Herbosa also serves as chair of the PhilHealth Board of Directors.

GMA News Online has sought comment from the other respondents but has yet to receive a response as of posting time. — VDV, GMA Integrated News