Manila: Malaca±ang has expressed its respect for the Supreme Court's (SC) order to restore the Philippine Health Insurance Corporation's (PhilHealth) PHP60-billion idle funds, which were initially transferred to the national treasury in 2024. In a statement, Executive Secretary Ralph Recto emphasized the Executive branch's commitment to adhering to the SC's directive and ensuring that the fund's return complies with existing laws and budgetary procedures.
According to Philippines News Agency, Recto reiterated that the Marcos administration is dedicated to maximizing government resources to ensure healthcare accessibility for all Filipinos. He highlighted President Ferdinand R. Marcos Jr.'s proactive efforts, initiated on September 20, to restore PhilHealth funds in recognition of the agency's improved performance and expanded benefits.
Recto assured that PhilHealth's service delivery was not compromised by the fund transfer and that no member contributions were affected. He noted that the correction facilitated the largest expansion of benefit packages in Universal Health Care history and the implementation of Zero Balance Billing, which aims to protect Filipino families from escalating medical costs.
The Executive branch, Recto added, complied with a congressional mandate under the 2024 General Appropriations Act. He clarified that the Department of Finance's (DOF) role is strictly related to revenue generation, debt, and deficit management. Recto, a former Finance chief, defended the directive as a pragmatic approach to optimize government resources without resorting to additional borrowing or new taxes.
Prior to any fund transfer, the Office of the Government Corporate Counsel, the Governance Commission for GOCCs, and the Commission on Audit had authorized the DOF's actions, with the PhilHealth board also approving the transfer.
In a separate statement, Presidential Communications Office Acting Secretary Dave Gomez mentioned that the Office of the Solicitor General would review the SC ruling and consider filing a motion for reconsideration. Gomez also noted that the restoration was incorporated in the General Appropriations Bill by the House of Representatives and would be upheld by the Senate.
The SC's decision, dated Wednesday, mandated the return of the PHP60 billion transferred to the National Treasury and permanently prohibited the transfer of the remaining PHP29.9 billion fund balance. The SC declared void certain provisions of the 2024 General Appropriations Act and DOF Circular No. 003-2024, citing grave abuse of discretion.
The SC emphasized that Congress cannot repeal provisions of existing laws through the GAA and clarified the limitations of the Finance Secretary's powers concerning budget augmentation. The court ruled that President Marcos did not commit grave abuse of discretion when certifying House Bill No. 8980, now the 2024 GAA, as urgent.
The SC also dismissed the petitioners' request to determine the liability of the DOF Secretary for technical malversation and/or plunder, considering such matters inappropriate for resolution in this case.
