Solicitor General Menardo I. Guevarra has underscored before the Supreme Court that the majority of the Philippine Health Insurance Corporation’s (PhilHealth) PHP 60 billion excess funds remittance to the National Treasury were used to finance critical health and social service programs.
“Under the purposes listed under the unprogrammed appropriations [of the General Appropriations Act of 2024], the biggest chunk goes to social projects, including health projects,” SolGen said during the second round of oral arguments in the Supreme Court on February 25, 2025 regarding the consolidated petitions challenging the constitutionality of PhilHealth’s fund transfer.
“And as a matter of fact, as of December of 2024, the total amount of PHP 46 billion pesos, thereabouts, more or less, had been devoted under the unprogrammed appropriations for social— more particularly, health projects,” he expounded.
PhilHealth’s remittance came after the national government’s implementation of Special Provision 1(d) of the 2024 General Appropriations Act (GAA), which authorizes the utilization of government-owned and -controlled corporations (GOCC) fund balances to finance key programs in health, social services, and infrastructure under the Unprogrammed Appropriations.
The 2024 GAA mandates the Department of Finance (DOF) to implement the said provision, which led to the issuance of clear guidelines through DOF Circular No. 003-2024.
Out of the PHP 60 billion remittance of excess funds from PhilHealth, 78% or PHP 46.61 billion went to key health and social services that will uplift the lives of every Filipino.
According to DOF data, the largest chunk worth PHP 27.45 billion was used to settle the long-overdue Public Health Emergency Benefits and Allowances for Health Care and Non-Healthcare Workers who served and risked their lives during the COVID-19 pandemic.
Meanwhile, PHP 10.00 billion was utilized to provide Medical Assistance to Indigent and Financially Incapacitated Patients.
Furthermore, PHP 4.10 billion financed the procurement of various medical equipment for the Department of Health (DOH) hospitals, local government unit (LGU) hospitals, and Primary Care Facilities.
About PHP 3.37 billion funded the construction of three DOH health facilities, while PHP 1.69 billion went to the Health Facilities Enhancement Program.
The rest, or about PHP 13.00 billion, was used to fund government counterpart financing for foreign-assisted infrastructure and “social determinants for health” projects. These will accelerate the delivery of healthcare services to remote areas and enhance the health and well-being of Filipinos by ensuring food security.
Examples of these projects under the unprogrammed appropriations for government counterpart financing are the Panay-Guimaras-Negros Island Bridges; the Metro Manila Subway Project; the Philippine Multi-Sectoral Nutrition Project; the Mindanao Inclusive Agriculture Development Project; the Cebu-Mactan Bridge and Coastal Road Construction Project; the North-South Commuter Railway System; the Support to Parcelization of Lands for Individual Titling Project; the Teacher Effectiveness and Competencies Enhancement Project; and the Philippine Fisheries and Coastal Resiliency Project, among others.
SolGen Guevarra likewise underscored that the transfer of PhilHealth’s excess funds has spurred its recent expansion of health benefits.
“PhilHealth has been increasing its benefit packages even before Special Provision 1(d) came into effect, and more so after that special provision was enacted as part of the unprogrammed appropriations. We have seen [benefits] increase over the past several months,” he said.
As of 2024, PhilHealth has almost half a trillion pesos or PHP 498 billion of cash in its war chest, more than enough to continue increasing its inpatient, outpatient, and special benefit packages.
The oral arguments on the consolidated petitions will resume on March 4, 2025.
