Hontiveros Criticizes Transfer of PhilHealth Funds

MANILA, Philippines — Senator Risa Hontiveros condemned the transfer of unused Philippine Health Insurance Corp. (PhilHealth) funds to the national treasury on Tuesday, arguing that it was unjustified and undermined the right of every Filipino to quality and affordable health care.

During a Senate Committee on Health public hearing, Hontiveros criticized the Department of Finance (DoF) directive that ordered the transfer of unutilized funds from government-owned and -controlled corporations (GOCCs) to the national reserve.

Hontiveros has been advocating for the return of PhilHealth's surplus funds to its accounts, emphasizing that under the Universal Health Care (UHC) Act, "no PhilHealth fund or income shall accrue to the general fund of the national government or any of its agencies and instrumentalities."

"The actions of the DoF with its issuance of the circular, PhilHealth's inability to utilize its funds, and the approval to return funds to the national government by the Governance Commission for GOCC, are unjustified and potentially compromise the rights and interests of every Filipino to quality, accessible, and affordable health care," Hontiveros stated.

Senator JV Ejercito highlighted the importance of funds for the implementation of the UHC Act.

"I have many questions. Was this so-called excess fund the reason why our out-of-pocket expenses increased? Shouldn't it be used to enhance benefit packages? Why are there excess funds if our people struggle to pay the PhilHealth premium month after month?" Ejercito questioned.

Hontiveros pointed out that many poor Filipinos still lacked adequate medical assistance. "These are clear indications that despite the enactment of the Universal Health Care Act, out-of-pocket expenses remain high, the demand for better financial health protection is significant, and we are far from achieving universal health care for all," she said.

In response, Finance Secretary Ralph Recto explained that reallocating idle funds from GOCCs was in compliance with a directive from Congress outlined in the General Appropriations Act (GAA) of 2024.

"To fund unprogrammed appropriations, Congress identified an alternative to new taxes and debts by collecting the dormant and unused funds of GOCCs, on which we still pay interest. This is explicitly stated in the 2024 General Appropriations Act, and we are strictly adhering to it," Recto said during a Senate inquiry on the implementation of the UHC Act.

Recto noted that legal experts advised the DoF that PhilHealth's P89.9 billion unused government subsidies were not part of its reserve funds, nor were they restricted by the UHC Act.

"This is the legal advice we are following. Not only is it legal, but it will also contribute to economic growth and job creation," Recto added.