Metro Manila, Philippines – President Ferdinand Marcos Jr. said the P60 billion in unused funds of the Philippine Health Insurance to Corporation (PhilHealth) remitted to government coffers will be returned to the state health insurer.
“Dahil sa ating mga ginagawa — siguro alam naman ninyo lahat, ‘yung savings natin na bago na galing sa iba’t ibang departamento but mainly from (the) Department of Public Works and Highways (DPWH) — ‘yong P60 billion na ‘yan ibabalik na natin sa PhilHealth,” Marcos said on Saturday, Sept. 20, during a visit at the Dr. Jose Fabella Memorial Hospital in Manila.
[Translation: Because of our measures – maybe you all know the new savings that we got from various departments, but mainly from the DPWH – the P60 billion will be returned to PhilHealth.]
The chief executive said the reverted funds will be used to strengthen PhilHealth, especially for the implementation of the zero balance billing policy in Department of Health-run hospitals.
He said that while the government introduced wider coverage of PhilHealth services even with the fund transfer, there were still doubts about the state health insurer.
“We are talking about life and death issues here, so I cannot blame them na may pangamba sila na baka sa pagkuha ng P60 billion na dinala na sa national government ay baka mabawasan ang services,” Marcos said.
[Translation: We are talking about life and death issues here, so I cannot blame them for their fear that with the P60 billion remittance to the national government, PhilHealth services may be reduced.]
The Department of Finance (DOF) confirmed it communicated to Marcos a solicited opinion supporting fund augmentation for PhilHealth and the restoration of the P60 billion since the state health insurer had improved its revenue performance.
“Another factor is the creation of fiscal space created by the termination and suspension of flood control projects,” the DOF said in a statement.
In 2024, the Department of Finance (DOF) ordered PhilHealth to turn over P89.9 billion in funds declared as excess to the Bureau of the Treasury.
Of the amount, P60 billion was remitted to the national treasury in at least three tranches, before the Supreme Court issued a temporary restraining order on the transfer of remainder.
The DOF explained the P60 billion was used to pay mostly for the health emergency allowances of COVID-19 frontliners, as well as medical aid, health facilities, and the procurement of medical equipment for DOH and local government unit-run hospitals and primary care facilities.
The DOF previously said a special provision in the 2024 budget law authorized the use of government-owned and -controlled corporation fund balances to finance key programs in health, social services, and infrastructure under the unprogrammed appropriations.
