Groups Urge Supreme Court to Halt PhilHealth Fund Turnover


MANILA, Philippines — With the executive branch appearing reluctant to return P20 billion in unused subsidies remitted by the Philippine Health Insurance Corp. (PhilHealth) to the national treasury, various advocacy groups and budget watchdogs plan to seek intervention from the Supreme Court.


A diverse coalition, including members of the academic community, medical professionals, and other stakeholders, is set to challenge the contentious provisions of the 2024 General Appropriations Act (GAA) and the Department of Finance’s (DOF) Circular No. 003-2024. These directives require PhilHealth and other government-owned and controlled corporations (GOCCs) to remit unutilized subsidies to the national treasury to fund unprogrammed appropriations.


Legal Challenge


During a press conference in Quezon City, former Finance Undersecretary Cielo Magno announced that they are finalizing the petition, which could be filed as early as Friday. Magno, who is also a professor at the University of the Philippines Diliman School of Economics, argued that Special Provision 1(d) under Chapter XLIII on Unprogrammed Appropriations in the 2024 GAA and the DOF circular are “rider” provisions, thus making them “illegal and unconstitutional.”


“A law should only have one subject. For the GAA, it should be about the budget. But this provision under the 2024 GAA effectively amends other laws, particularly the charters that created these GOCCs, including that of PhilHealth’s,” she explained.


Violation of Universal Health Care Act


Magno emphasized that remitting PhilHealth’s unutilized subsidies back to the treasury violates Section 11 of Republic Act No. 11223, or the Universal Health Care Act of 2019. This section stipulates that “the excess of the PhilHealth reserve fund shall be used to increase the program’s benefits and to decrease the amount of members’ contributions.”


The coalition’s move comes amid ongoing debates about the proper utilization of PhilHealth funds and the government's budget management practices. The outcome of this legal challenge could significantly impact the administration of health care funds in the Philippines.


Additional Insights


The issue has sparked discussions among lawmakers, with some expressing concerns about the financial management and transparency of PhilHealth. The directive to remit unused funds has been viewed by some as detrimental to the goal of enhancing health care benefits for Filipinos.


As the petition moves forward, stakeholders from various sectors are watching closely, anticipating how the Supreme Court will address these crucial issues concerning health care funding and governance.

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