‘Nothing illegal in transfer of excess PhilHealth funds’

SOLICITOR General Menardo Guevarra defended the transfer of “excess” funds of the Philippine Health Insurance Corporation (PhilHealth) to the National Treasury, amounting to P89.9 billion, saying there is nothing unconstitutional or illegal about the move.

This as Guevarra asked the Supreme Court in a manifestation dated September 4 to junk for lack of merit the petition seeking to stop the Marcos administration from transferring the funds to the national treasury.

The OSG answer was in response to an SC en banc ruling late last month directing Malacañang and Congress to answer the petition seeking to stop the transfer of excess PhilHealth funds to the national treasury to fund other government projects.

To recall, opposition Sen. Aquilino Pimentel III, former Finance undersecretary Cielo Magno, the Philippine Medical Association and several others asked the High Court in a petition to declare as unconstitutional Department of Finance (DOF) Circular No. 003-204 and Section 1(d) of XLIII of the 2024 General Appropriations Act.

The assailed DOF circular directs the transfer of unused subsidies from government-owned and-controlled corporations (GOCCs), specifically PhilHealth, to the national treasury to bolster the government’s unprogrammed appropriations.

Pimentel’s group argued that the said DOF circular is “unconstitutional” and “illegal.”

“By taking out the alleged ‘unused funds’ which are pooled funds from members contribution, whether direct or indirect, Congress, DOF and PhilHealth, deprive the Filipino people access to quality and affordable health care goods and services,” the petitioners said.

“The fund transfer goes against our goal to have a comprehensive universal health insurance program for all Filipinos,” they added.

The petitioners said there is a pressing need for the High Court’s intervention as P20 billion of the P89.9 billion in PhilHealth funds has been transferred to the national treasury.

They also asked the High Court to issue a temporary restraining order and/or writ of preliminary injunction to prevent the transfer of funds and preserve and or restore the status of prior to the transfer of the P20 billion to the national treasury last