Gov’t To Return P60 Billion To PhilHealth

The Marcos administration has decided to return P60 billion to the Philippine Health Insurance Corp. (PhilHealth) that it had tagged as excess funds and transferred to the national treasury.

In remarks delivered during his visit to Dr. Jose Fabella Memorial Hospital in Manila on Saturday, Sept. 20, President Marcos acknowledged the lingering concerns about the possible impact of the transfer of excess funds on the benefits provided by PhilHealth.

“No matter how we explain and show that the services covered by PhilHealth are increasing, people still fear that the services may be reduced,” the President told reporters.

“But that cannot be avoided... We are talking about life and death issues here. So, you cannot blame them if they have fears that the transfer of the P60 billion to the national government may reduce the services even if we have proven that the services will not be reduced,” he said.

Marcos said the national government has built up savings from various agencies, mainly from the public works department, whose flood control projects for next year have been scrapped. The agency is under scrutiny over alleged anomalous contracts that resulted in ghost or substandard flood mitigation projects.

“So, I’m happy to be able to announce that because of what we are doing... we will return the P60 billion to PhilHealth,” Marcos said. 

“This is not just meant to allay the fears of the people... We already have savings. We will now use it to expand the services of PhilHealth,” he added.

PhilHealth was directed to remit to the national treasury P89.9-billion excess government subsidies last year.

Petitions were filed before the Supreme Court questioning the return of excess reserve funds from government-owned and controlled corporations to the national treasury to fund unprogrammed appropriations. 

The high court issued a temporary restraining order (TRO) on further transfer of PhilHealth funds to the national treasury.

A total of P60 billion had been remitted to the national government in three tranches, with the remaining P29.9 billion covered by the TRO.

Marcos assured the public that his administration would pursue efforts to expand health care and let the people know about existing health services.

“Health care is the most important service that the government can give and that’s why we are strengthening and expanding it,” the Chief Executive said.

Marcos also thanked health care workers, as he credited them for his recovery from COVID-19.

“Because of your hard work, all of you, you saved my life and you saved many, many, thousands, millions of lives, what more can you ask of our health care workers,” he said.

“And you are continuing to save lives. You are continuing to give hope to our people, to our families and that is the most important thing we can do, to give hope.”

Marcos visited the hospital to inspect the implementation of the zero billing program, which ensures that eligible patients are discharged without paying out-of-pocket expenses for services covered by PhilHealth. 

In a statement, Department of Health (DOH) Secretary Ted Herbosa described Marcos’ move as “crucial for ongoing efforts to expand health benefits and services for all Filipinos.”

“This new allocation of P60 billion to PhilHealth aligns with the DOH’s objective to increase the government’s share in current health expenditures, from around 40 percent to 70 percent, which will significantly reduce out-of-pocket costs of Filipino patients,” Herbosa said.

“As its supervising agency, DOH will continue supporting PhilHealth in its role to pay the health benefits of all Filipinos,” he added.

PhilHealth said Marcos’ “strategic move is proof to the government’s trust in the capability of PhilHealth to give financial protection to all Filipinos.”  

“We promise to use the fund with honesty, integrity and transparency. This is to improve and maintain the benefits our members continue to enjoy amid the rising cost of medical services and changing health needs,” it said.

“The public can expect that we will do our best to enhance the benefits package we offer,” said PhilHealth.

On the other hand, a civil society group lauded the President’s move but said it was almost two years late. 

“The Universal Health Care advocates hope this signals a turnaround in the previous policy to defund PhilHealth. The current budget deficit in PhilHealth was due in large part to this wrong fiscal policy,” said Action for Economic Reforms fellow Dr. Juan Antonio Perez III.

Independent health reform advocate Dr. Tony Leachon said though the return of the funds is a step forward, this is not yet a resolution.

“The Supreme Court has yet to decide on the constitutionality of the fund transfer. The rule of law must still speak. There must be accountability. Good governance is not just about correcting mistakes – it’s about ensuring they don’t happen again,” Leachon added. 

Sen. Francis Pangilinan also welcomed Marcos’ decision, “especially as our public hospitals and frontliners continue to face immense challenges.”

“We now urge PhilHealth to act swiftly and transparently in allocating these resources to where they are needed most,” Pangilinan said.

Pangilinan vowed to monitor PhilHealth’s implementation of programs amid issues with its limited coverage despite billions in state subsidy.

“Transparency and accountability must go hand in hand with funding restoration,” he said. –  With additional reports from Rhodina Villanueva and Marc Jayson Cayabyab