Senator Pimentel Urges President Marcos to Halt PhilHealth Fund Transfer

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MANILA, Philippines — Senate Minority Leader Aquilino Pimentel III emphasized that the most straightforward way to prevent the transfer of P89.9 billion from the Philippine Health Insurance Corp. (PhilHealth) to other government projects is for President Ferdinand Marcos Jr. to issue a direct order.


In a radio interview on Sunday, Pimentel remarked, "Yes, that is the easiest way." He further noted, "Waiting for the next Sona (State of the Nation Address) would take too long," humorously adding that it seemed the President might be waiting for a dramatic moment to make the announcement during the Sona, which is still far off.


Pimentel referred to Marcos' third Sona, where the President declared his decision to ban Philippine offshore gaming operators (Pogos) in the country. 


In a previous statement, Pimentel expressed surprise at the President's decision on Pogos, praising Marcos for heeding the "overwhelming sentiment of the Filipino people," and calling it "his best Sona so far."


Last Friday, Pimentel, along with health advocates, petitioned the Supreme Court to prevent the diversion of PhilHealth's excess funds. They sought a temporary restraining order against the Department of Finance (DOF) Circular No. 003-2024, which mandated the transfer of unused PhilHealth funds for "unprogrammed appropriations."


The petitioners argued that the fund transfer violated several constitutional provisions, including the unauthorized insertion of a "rider" in the 2024 national budget to justify the transfer. They claimed this move was unconstitutional, as it exceeded Congress' power to appropriate funds and contradicted the provisions of the Universal Health Care Act regarding PhilHealth.


The petitioners also highlighted that the national budgets from 2021 to 2023 did not include provisions allowing government-owned and-controlled corporations (GOCCs) to return "excess reserve funds" to the national treasury, marking this as the first instance such a clause appeared in the General Appropriations Act.


The DOF circular, issued in February, was reportedly in line with the 2024 budget law, which directed the finance department to implement guidelines for collecting unprogrammed appropriations from GOCCs' fund balances. However, Pimentel questioned why the DOF seemed to single out PhilHealth among the GOCCs.


"They should not target the PhilHealth fund. Why don't they apply their legal basis to other GOCCs? They can find other GOCCs," he stated.


The DOF defended its directive, arguing that the excess funds from GOCCs, including PhilHealth, could be used to finance projects to stimulate the economy. According to Finance Secretary Ralph Recto, P20 billion of the P89.9 billion has already been transferred to the national treasury, with the remainder to be released in phases.


Pimentel countered, "PhilHealth’s money is meant for the health of the people, not for the health of the economy. The health of the economy is uncertain, but the money from PhilHealth comes from the contributions of its members. The reserved funds belong to the members."

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