Marcos orders return of P60B to PhilHealth
President Marcos on Saturday ordered the return of P60 billion in funds from the national treasury to the Philippine Health Insurance Corp. (PhilHealth), reversing one of the most assailed financial decisions of his administration.
“Today we can announce that the P60 billion from PhilHealth funds, which were not being used and were taken by the Department of Finance (DOF) to the national government, will now be returned,” Mr. Marcos said at Dr. Jose Fabella Memorial Hospital in Manila where he inspected the implementation of the zero balance billing program.
The President’s surprise decision came just ahead of large demonstrations planned in different parts of the country on Sunday to condemn massive corruption in government, especially in public works.
It also came more than a year after Mr. Marcos authorized the transfer of “excess” PhilHealth funds totaling P89.90 billion, and could render a long-awaited ruling of the Supreme Court on the issue moot and academic.
The Supreme Court issued a temporary restraining order on the transfer in November last year, when P60 billion had already been moved from PhilHealth to the treasury in three tranches.
Public anxiety
The President said he understood the public’s anxiety that the transfer of funds will affect PhilHealth programs and services.
“Such fears are unavoidable, because here we are talking about life-and-death situations for people. So, I cannot blame them for being worried that the transfer of the P60 billion to the national government might reduce services. Even though we have proven that services will not be cut, naturally the concern remains,” he said.
The President said his decision was consistent with his administration’s priority to strengthen the country’s health-care system.
“Health care is the most important service the government can give. That is why we are strengthening and expanding it significantly,” Mr. Marcos noted.
The DOF and the Department of Health (DOH) supported the move.
Meet obligations
In a statement, the DOF said it had communicated to the President a “solicited opinion” that since PhilHealth had improved its revenue performance, it “fully recommends the restoration of the reverted P60 billion.”
The restoration of the money will allow PhilHealth to meet its zero balance billing program obligations, the agency said.
Health Secretary Teodoro Herbosa, who sits as concurrent chair of the PhilHealth board of directors, said the President’s move was “crucial for ongoing efforts to expand health benefits and services for all Filipinos.”
The return of the funds 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.
“Right now, zero balance billing happens at DOH hospitals because DOH pays more than PhilHealth. Over time, PhilHealth should be paying most, if not all, of the hospital bill,” Herbosa explained.
Already allocated
The DOF and DOH also confirmed that the returned funds have been allocated for the following:
• P27.45 billion for the payment of balance of health emergency allowances of health workers who served during the COVID-19 pandemic.
• P13 billion for government counterpart financing for foreign-assisted projects that deal with the social determinants of health.
• P10 billion for the medical assistance to indigents and financially incapacitated patients.
• P5.06 billion for the health facilities enhancement including three DOH health facilities; and
• P4.1 billion for the procurement of various medical equipment for DOH and local government hospitals and primary care facilities.
Savings generated from other government agencies, particularly the Department of Public Works and Highways (DPWH), also paved the way for the restoration of the funds.
Definitive ruling
The DPWH cut its originally proposed P881.3 billion to P625.78 billion budget for 2026, its lowest since 2020, mainly by slashing the entire allocation for flood control projects amounting to P255 billion.
Former Finance Undersecretary Cielo Magno and the Nagkaisa coalition said a ruling by the Supreme Court would still be necessary to prevent the “illegal” diversion of PhilHealth funds from happening again.
Magno and Nagkaisa were among those who petitioned the high court to declare the fund transfer as unconstitutional.
Nagkaisa urged the Supreme Court to hold accountable those behind the diversion, including Finance Secretary Ralph Recto, former Senate President Francis Escudero, and former Speaker Martin Romualdez, who they said were responsible for the budget provisions that allowed the transfer. —WITH A REPORT FROM KRIXIA SUBINGSUBING
