The Supreme Court of the Philippines will hold oral arguments on February 4, 2023, regarding three petitions that challenge the transfer of P89.9 billion in excess funds from the Philippine Health Insurance Corporation (PhilHealth) to the national treasury. Petitions were filed by groups led by Senator Aquilino Pimentel III, Bayan Muna Chairperson Neri Colmenares, and 1SAMBAYAN Coalition, citing concerns about the impact on healthcare access and the constitutionality of the transfer.
SC holds oral arguments on Feb. 4 on transfer of P89.9-B PhilHealth’s excess funds to national treasuryThe Supreme Court is set to hold oral arguments starting at 2 p.m. on Tuesday, Feb. 4, on three petitions that challenged the transfer of the P89.
9 billion excess funds of the Philippine Health Insurance Corporation to the national treasury. The petitions against the transfer were filed by the groups of Sen. Aquilino Pimentel III and Bayan Muna Chairperson Neri Colmenares, and 1SAMBAYAN Coalition together with members of the University of the Philippines Law Class 1975, Senior for Seniors Association, Inc., Kidney Foundation of the Philippines, and other private individuals. Named respondents in the petitions were Department of Finance Secretary Ralph G. Recto, the House of Representatives represented by Speaker Ferdinand Martin Romualdez, the Senate represented by Senate President Francis Chiz Escudero; Executive Secretary Lucas P. Bersamin; and PhilHealth represented by its President Emmanuel Ledesma Jr.Last Oct. 29, the SC issued a TRO that stopped the transfer of the funds. However, at the time the TRO was issued, a total of P60 billion in PhilHealth’s excess funds had been transferred to the national treasury – P20 billion last May 10, P10 billion last August 21, and P30 billion last Oct. 16. It was not known immediately if the SC would act on the already transferred funds after the oral arguments before it issues its final verdict on the three petitions.Whether the Special Provision No. 1 of the Unprogrammed Appropriations in the 2024 General Appropriations Act which authorizes the use of the Fund Balance of Government-Owned or Controlled Corporations to fund the identified purposes in the Unprogrammed Appropriations, was validly enacted. Whether the President’s certification as to the urgency of enacting House Bill No. 8980 violates Article VI, Section 26 of the Constitution. Whether the Congress can increase the appropriations, including Unprogrammed Appropriations, initially submitted by the President under the National Expenditure Program. Whether the Bicameral Conference Committee can increase the appropriations in the appropriations bill. Whether the Bicameral Conference Committee can insert a provision or item that was not originally in the appropriation bill.Whether Special Provision No. 1 and Department of Finance Circular No. 003-2024 violate the constitutional right to health. Whether Special Provision No. 1 is a prohibited rider within the contemplation of Article VI, Section 25 of the Constitution.Whether DOF Circular No 003-2024 is valid. Whether DOF Circular No. 003-2024, which implements Special Provision No. 1 violates Article VI, Section 29 of the Constitution. Whether DOF Circular No. 003-2024 violates Section 70 of the General Appropriations Act of 2023, which provides for cash-based budgeting. Whether the reserve funds of PhilHealth may be validly reverted to the National Treasury by virtue of a special provision in the GAA. The group of Pimentel said “the pilfering of the reserve funds is a grave disservice to the Filipino people who depend on PhilHealth for financial risk protection from illness and who are still heavily burdened by out-of-pocket health expenditure.” “With consistently rising inflation and worsening social conditions, it is imperative that these funds be used exclusively for the implementation of the Universal Health Care Act, the expansion of benefit packages, and the reduction of premium contributions,” the group also said. It added that the 2024 General Appropriations Act on Unprogrammed Appropriations is unconstitutional for being a rider that exceeds Congress’ power to appropriate funds under the Constitution. Former Bayan Muna congressman Ferdinand Gaite said that"siphoning funds from PhilHealth could negatively impact on the benefits of PhilHealth beneficiaries, while withdrawal of funds from PDIC could also affect depositors who rely on PDIC to insure their deposits in banks.” In its petition, 1SAMBAYAN Coalition and its co-petitioners assailed as unconstitutional the special provisions under Paragraph 1, Chapter XLIII of Republic Act No. 11975, the 2024 GAA, and DOF Circular 003-2024. The coalition told he SC that in April 2024, Finance Secretary Recto instructed PhilHealth to remit to the Bureau of Treasury its fund balance of P89.9 billion labelled as “excess” funds for the years 2021, 2022, and 2023 from subsidy for the premium contributions of indigents paid for by the government. It said that on Aug. 27, 2024, 1SAMBAYAN Coalition asked Secretary Recto to recall the directive issued to PhilHealth on the transfer of funds. However, it lamented that up to the filing of the petition with the SC Recto had neither recalled the circular nor justified why the transfer of the unused funds is not contrary to law. It pointed out that under Article VI, Section 25 of the Constitution, “No law shall be passed authorizing any transfer of appropriations; however, the President, the President of the Senate, the Speaker of the House of Representatives, the Chief Justice of the Supreme Court, and the heads of Constitutional Commissions may, by law, be authorized to augment any item in the general appropriations law for their respective offices from savings in other items of their respective appropriations.” It also said that the DOF secretary is not among the enumerated officials. “In the case at bar, Respondent Department Secretary Recto does not have the authority to effect a transfer of unused or excess funds from GOCCs such as PhilHealth back to the national treasury. Thus, the law, the circular, and the resulting and anticipated transfer violate the Constitution.” At the same time, the petition pointed out that “PhilHealth funds are considered as special funds because they are collected for a specific purpose and the unused or idle thereof cannot be classified as government savings.” Government lawyers, through the Office of the Solicitor General , had the SC to dismiss the petitions. The OSG said that the transfer of PhilHealth’s unutilized funds “when viewed from a broader perspective, will not necessarily hamper, much less disable, the implementation of PhilHealth’s mandate.” “Assuming that there are challenges, roadblocks, and shortcomings in achieving the purposes of the UHCA , the same are matters only of its implementation, and are not tantamount to a violation of the right to health, as erroneously espoused by petitioners,” Solicitor General Menardo I. Guevarra said. “All told, there is no violation of the people’s right to health in this case. The transfer of funds has not been not clearly shown to have impaired, let alone violated, the mandates of the UHCA,” Guevarra stressed.
PHILIPPINES SUPREME COURT PHILHEALTH FUND TRANSFERS CONSTITUTIONALITY HEALTHCARE
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