1Sambayan seeks halt to reverting of PhilHealth excess funds

The 1Sambayan coalition urged the Department of Finance (DOF) to recall the transferring of Philippine Health Insurance Corporation (PhilHealth) excess funds to the national treasury,  saying the move was “unconstitutional”.

In a letter dated  August 22, 1Sambayan convenor and retired Supreme Court Associate  Justice Antonio Carpio said DOF Circular 003-2024 violated the  Constitution as only the President could transfer savings from one item to another in the appropriations for the Executive Branch under the General Appropriations Act (GAA).

“The delegation of power in the 2024 GAA to the Finance Secretary to transfer savings from  GOCCs to the Bureau of the Treasury to fund items in the Unprogrammed  Appropriations in the 2024 GAA is unconstitutional for being an undue delegation of constitutional power that belongs exclusively to the  President,” the letter reads.

1Sambayan also said the previous transfer of the unused funds may be considered technical malversation of public funds and may constitute plunder.

“Under Section 29 (3), Article VI of the Constitution, the funds of Philhealth are Special Funds raised through taxation for a specific purpose and can be used only for the specific purpose intended by law, which is the universal health of the Filipino people, a purpose that has not been accomplished or abandoned,” the coalition said.

“In view of the foregoing, we seek your sound discretion to recall the directive to remit PhilHealth’s unused funds to the national treasury. In the event that no recall is made, we will be constrained to test the validity of the circular to the Supreme Court,” it added.

In March, the DOF issued Circular No. 003-2024 which directed GOCCs, such as PhilHealth, to remit excess funds back to the Treasury to allow the government to fund unprogrammed appropriations.

Of the  P89.9 billion excess PhilHealth funds, at least P20 billion was remitted as early as the first quarter of the year and was used to fund the more than P27 billion unpaid 5.04 million claims of COVID-19 pandemic era service allowances or health emergency allowances (HEA) of frontliners.

As of August 21, the state health insurer remitted another P10 billion to the Treasury.

The Philippine Medical Association, Senator Aquilino "Koko" Pimentel III,  former Finance Undersecretary Cielo Magno, Dr. Ma. Dominga Padilla, and the Sentro ng mga Nagkakaisa at Progresibong Manggagawa, among others,  filed a petition with the Supreme Court that sought to block the transfer of the P89.9  billion in excess funds of PhilHealth to the Treasury.

Last week, the High Court ordered several senior government officials to submit their comments to the petition.

Amid criticisms of the government’s diversion of PhilHealth funds, Finance Secretary Ralph Recto said the move had a legal basis and only followed the orders of  Congress, as provided under the 2024 GAA.

Recto also emphasized the need to mobilize unused funds to bankroll priority health, education, and infrastructure programs. — DVM, GMA Integrated News