PH senators laud return of P60-billion fund to PhilHealth

Philippine senators welcomed the return of the P60-billion fund to the Philippine Health Insurance Corporation (PhilHealth), the government agency that provides universal health insurance to Filipinos.

PhilHealth earlier confirmed that the P60 billion had been returned to them in compliance with the Supreme Court ruling stating that the agency’s funds must be used exclusively for healthcare services.

Senator Pia Cayetano described the return of the fund as “a victory for health and for the Filipino people” following the implementation of a recent Supreme Court (SC) ruling.

The SC had earlier voided the transfer of PhilHealth's supposed excess funds to the National Treasury.

“This is a victory not for any single individual, but for every Filipino family that depends on PhilHealth for access to medicine, treatment, hospitalization, and preventive care,” Cayetano said.

As Senior Vice-Chairperson of the Senate Committee on Finance, Cayetano said she consistently questioned the transfer of PhilHealth funds during deliberations on the 2025 and 2026 national budgets, including during plenary debates and Bicameral Conference Committee discussions.

Cayetano said both the Universal Health Care Act and the Sin Tax laws clearly require that the funds be retained and utilized solely for PhilHealth programs and services.

As principal author and sponsor of the Sin Tax Reform Act of 2020, Cayetano pushed for revenues from higher excise taxes on alcohol and e-cigarette products to be earmarked for universal healthcare implementation.

During budget interpellations, the senator pointed to what she described as a growing gap between revenues legally intended for PhilHealth and the actual amounts transmitted to the agency.

She stressed that the controversy went beyond fiscal or bookkeeping concerns and involved the government’s responsibility to uphold Filipinos’ right to healthcare.

“PhilHealth funds exist for the health of the Filipino people and cannot be used for any other purpose,” Cayetano said.

She also emphasized that the law is clear that these funds are meant to strengthen healthcare benefits, improve systems, expand access, and ensure better service delivery for the people.

“PhilHealth must ensure that these funds are used strictly in accordance with the law – to address the urgent health needs of our people,” Cayetano said. 

“The SC decision is a clear reminder that healthcare funds are not excess funds. They are lifelines for millions of Filipinos. And the agency has a duty to see that every peso serves its true purpose," she added.

Meanwhile, Senator Loren Legarda also lauded the return of the P60-billion fund to PhilHealth.

In a statement, Legarda said, "The ₱60 billion returned to PhilHealth upon the directive of President Ferdinand R. Marcos Jr. should never have been taken in the first place."

"These are funds for the health of the Filipino people. They are not excess funds that can be diverted while hospitals lack resources, health workers are overburdened, and patients are forced to pay out of pocket or postpone treatment," she said.

Legarda also called attention to the remaining ₱220.39 billion in health funds that must be "fully released, properly accounted for, and utilized for the benefit of the Filipino people."

Of this total, ₱113.44 billion is derived from sin tax revenues on tobacco, alcohol, and sweetened beverages from 2023 to 2025. By law, these funds are specifically intended for PhilHealth.

An additional ₱106.95 billion is earmarked from the shares of Philippine Charity Sweepstakes Office (PCSO) and Philippine Amusement and Gaming Corporation (PAGCOR).

Legarda said it is essential that these allocations are managed transparently to ensure they reach their intended beneficiaries.

"I have consistently raised this in budget deliberations and through Senate Bill No. 1662, the proposed PhilHealth Automatic Funding Act, and Senate Resolution No. 339, which seeks to review the transfer of PhilHealth and PDIC funds to the National Treasury and strengthen safeguards for statutory and trust funds," she said.

The senator said universal health care "cannot be implemented through partial releases, delayed remittances, and after-the-fact corrections."

"The government must now release the remaining funds legally due to PhilHealth. Every peso intended for health must reach the people it was meant to serve," she added.

-Paraluman News