SC issues TRO on further transfer of PhilHealth excess funds

The Supreme Court (SC) en banc on Tuesday issued a temporary restraining order (TRO) on the further transfer of the P89.9-billion excess funds of the Philippine Health Insurance Corporation (PhilHealth) to the national treasury, its spokesperson said.

So far, PhilHealth said that P60 billion has been transferred to the national treasury with only P29.9 billion remaining with the agency.

“The Supreme Court issued a TRO to enjoin the further transfer of PhilHealth funds to the national treasury,” High Court spokesperson Atty. Camille Ting  said in a press conference.

“Effective immediately,” she added.

Asked if this means whether the previously transferred funds will be returned to PhilHealth, Ting said this was not the subject of the TRO.

For their part, PhilHealth President Emmanuel Ledesma Jr. said PhilHealth respects and will fully abide by the SC’s decision.

“We remain focused on our mission to provide all Filipinos with adequate financial protection against health risks through better and responsive benefit packages and availment policies that ensure greater access to healthcare services whenever and wherever they need them most,” he said in a statement.

In a separate statement, Finance Secretary Ralph Recto said the Department of Finance will respect the SC’s decision.

“We give our full cooperation to the SC as we look forward to the opportunity to shed light on the issues presented during the oral arguments. With this honorable platform, we trust that all issues will be addressed once and for all,” he said.

While assuring that the SC order will be respected, the Finance chief reiterated that the DOF's move to sweep the idle, unused, and excess funds of government-owned and -controlled corporations (GOCCs) is a mandate under Republic Act 11975 or the GAA 2024, which was approved by Congress.

"We reiterate that before proceeding with the utilization of GOCC idle funds, our agency exercised due diligence and consulted extensively with the government's legal experts. These include the Governance Commission for GOCCs, the Government Corporate Counsel, and the Commission on Audit. These efforts were undertaken to ensure full compliance with our laws," Recto said.

Meanwhile, Solicitor General Menardo Guevarra said the Office of the Solicitor General (OSG), which represents the government officials named as respondents in the pleadings, will respect the TRO.

The first petition against the transfer was filed in August by Senator Aquilino "Koko" Pimentel III and the Philippine Medical Association, among others.

This was followed by other petitions of the 1SAMBAYAN Coalition, headed by retired SC Associate Justice Antonio Carpio, and Bayan Muna chairperson Neri Colmenares and other members on October 16.

Ting said the high court has directed the respondents in the petition of the 1SAMBAYAN coalition to file their comments.

The SC has set oral arguments on the petitions in January 2025.

Petitoners laud SC move

In a separate statement, Carpio extended his gratitude to the SC.

“This  saves the poorest of the poor of Filipinos, numbering tens of millions, whose only source of life-saving medicine is the Philhealth,” he said.

“We hope that the Executive Branch will return all the transferred funds back to Philhealth pending the final decision of the Supreme Court,” he added.

Pimentel also welcomed the SC’s decision.

The senator said that the PhilHealth funds should be considered “sacred funds” as these are contributions from members.

“Good idea na dapat bantayan ang wording ng mga mechanisms which allow the tapping of the unprogrammed funds,” he said.

Senator JV Ejercito, the author of the Universal Health Care Act (UHC), for his part said he believes that healthcare funds should be used for PhilHealth members.

He called on fellow lawmakers to prioritize and pass their version of the proposed amendments to the UHC Act before the year ends.

“Included in the said UHC Amendments is a provision which reiterates that PhilHealth Funds cannot be realigned or transferred for other purposes,” he said.

“We’re confident that this will pave the way for urgent reforms in funding and ensure that every Filipino will have access to the health services they need without delay,” he added.

Senate Committee on Health chairman Senator Bong Go also thanked the SC, saying that the funds of the PhilHealth should be used for health.

“In fact, this will give us more resolve and more determination to fight for the fundamental right to health of every Filipino, especially the poor and the helpless, so that we may bring some hope for the hopeless and voice to the voiceless,” he said.—RF/ VDV, GMA Integrated News