SC stops transfer of PhilHealth funds
Credit to Author: Louise Maureen Simeon| Date: Wed, 30 Oct 2024 00:00:00 +0800
MANILA, Philippines — The Supreme Court (SC) has issued a temporary restraining order (TRO) on the transfer of “excess” funds of the Philippine Health Insurance Corp. (PhilHealth) to the national treasury.
The decision, made in full court session yesterday, is effective immediately, according to SC spokesperson Camille Sue Mae Ting.
The TRO has effectively stopped the scheduled transfer in November of P29.9 billion, representing the fourth and final tranche of the PhilHealth funds amounting to P89.9 billion that the Department of Finance (DOF) ordered impounded to fund the unprogrammed appropriations in the national budget.
PhilHealth had already transferred P20 billion in May, P10 billion in August and P30 billion this month.
“Over the past few months, there were already transfers of funds from PhilHealth to the national treasury to unprogrammed appropriations. The TRO is just really to prevent the further transfer of more funds from PhilHealth to the national treasury,” Ting said at a press briefing.
She said it is still possible for the SC to tackle the petitioners’ plea for a status quo ante order, which would allow the return of the funds already transmitted to the state coffers.
There are three consolidated petitions challenging the constitutionality of the PhilHealth fund diversion.
Senate Minority Leader Aquilino Pimentel III, former finance undersecretary Cielo Magno, 1Sambayan Coalition led by former Supreme Court associate justice Antonio Carpio and the Bayan Muna party-list were the petitioners.
Respondents were Finance Secretary Ralph Recto, the House of Representatives represented by Speaker Martin Romualdez, the Senate represented by Senate President Francis Escudero, Executive Secretary Lucas Bersamin and PhilHealth president Emmanuel Ledesma Jr.
The SC has set the oral arguments on the petitions on Jan. 14, 2025.
Recto said the DOF will respect the SC decision. PhilHealth’s Ledesma made the same commitment in a statement. “We fully respect and will abide by the decision of the Supreme Court on the issue,” Ledesma said.
Presidential Communications Office Secretary Cesar Chavez told reporters of Executive Secretary Lucas Bersamin’s approval of Recto’s position.
Recto is the “designated talking head on that issue,” Chavez said.
“As a public servant myself, I recognize the right of every citizen to seek redress from the courts. The DOF will fully comply with the order of the SC,” Recto said.
“We give our full cooperation to the SC as we look forward to the opportunity to shed light on the issues presented during the oral arguments. With this honorable platform, we trust that all issues will be addressed once and for all,” he said.
The finance chief reiterated that the DOF’s move was allowed under the General Appropriations Act, approved by Congress.
To fund unprogrammed appropriations, Congress may tap idle funds from government-owned and controlled corporations (GOCCs) such as PhilHealth, according to Recto.
He explained that the DOF exercised due diligence and consulted with the government’s legal experts before proceeding with the utilization of the funds.
The transferred PhilHealth resources were used to fund health workers’ unpaid allowances during the pandemic and the Salary Standardization VI for government employees released this year.
The funds also covered the revised Armed Forces of the Philippines modernization program, the Philippine Multisectoral Nutrition project, the Philippine Rural Development Project, the Mindanao Inclusive Agriculture Development Project and various big-ticket infrastructure projects under the Build Better More program.
Magno, one of the petitoners, said the SC decision will temporarily stop the financial hemorrhage of PhilHealth. “We look forward to the final resolution of the case and we hope that the court will declare the policy unconstitutional and require the DOF to return the funds to PhilHealth,” Magno, who is also a UP economist, told The STAR.
Independent health reform advocate Tony Leachon called the issuance of the TRO an “initial victory” and said “we can expect further deliberations to ensure that transparency and accountability are maintained.”
Carpio, for his part, said the TRO “saves the poorest of the poor of Filipinos, numbering tens of millions, whose only source of life-saving medicine is the PhilHealth.”
Pimentel said that with the issuance of the TRO, “at least the PhilHealth funds will not be dissipated pending the resolution of the case.”
“It is a good idea to watch the wording of the mechanisms that allow the tapping of unprogrammed funds,” Pimentel said.
Sen. Bong Go, chairman of the Senate committee on health, called the SC move “one big win for the Filipino people! Sulit ang ating pangungulit (our perserverance was worth it)!”
“We thank the Supreme Court for heeding the calls to temporarily stop the illegal and immoral transfer of health funds from PhilHealth to finance projects unrelated to the health and wellness of our people. The funds of PhilHealth are for health,” Go noted.
“The issuance of this TRO today does not end our crusade. In fact, this will give us more resolve and more determination to fight for the fundamental right to health of every Filipino, especially the poor and the helpless, so that we may bring some hope for the hopeless and voice to the voiceless,” he stressed.
Sen. JV Ejercito also commended the SC for issuing a TRO on PhilHealth fund transfer.
“As the author and champion of the Universal Health Care (UHC) Act, I strongly believe that health care funds must be used directly for the benefit of PhilHealth members, which include essentially every Filipino,” he said.
“It is unacceptable that there is such a large amount of funds that PhilHealth is not using while many of our countrymen continue to struggle with their hospital expenses,” he added.
He said PhilHealth owes the Filipino people an explanation for its underspending and for wasting opportunity, especially when these funds could have been used to expand health benefits, reduce premiums and support those who need them most, like the indigents, senior citizens and persons with disabilities (PWDs).
While the TRO is a “critical step forward,” Ejercito said there is still much to be done. “I urge our counterparts in the House of Representatives to prioritize and pass their version of the proposed amendments to the UHC Act before the year ends. Included in the said UHC amendments is a provision that reiterates that PhilHealth funds cannot be realigned or transferred for other purposes,” he said.
“We’re confident that this will pave the way for urgent reforms in funding and ensure that every Filipino will have access to the health services they need without delay,” he pointed out.
Militant group Bayan Muna also welcomed the SC’s issuance of a TRO.
“This crucial decision aligns with our ongoing efforts to safeguard the welfare of millions of Filipinos who rely on PhilHealth for their health care needs,” said Bayan Muna vice chairman Teodoro Casiño, a co-petitioner in the case.
Casiño said the TRO reflected their assertion that the transfer of PhilHealth’s essential resources to unallocated funds undermines the institution’s primary purpose, which is to provide adequate health coverage to our people.
“This decision by the Supreme Court signifies a victory not just for the petitioners but for every Filipino who believes in the value of transparency and accountability in government spending,” he said.
The Office of the Solicitor General (OSG) earlier asked the SC to dismiss the petitions against the fund transfer, which “when viewed from a broader perspective, will not necessarily hamper, much less disable, the implementation of PhilHealth’s mandate.”
The OSG pointed out that aside from its annual net income averaging more than P100 billion in the past three years, PhilHealth has a reserve fund over P480 billion as of March of this year, “highlighting its strong fiscal position.” — Cecille Suerte Felipe, Emmanuel Tupas, Mayen Jaymalin, Helen Flores