Solicitor General Menardo Guevarra told the Supreme Court that most of PhilHealth’s P60 billion transferred to the National Treasury funded essential health and social programs.
Guevarra said during oral arguments on the legality of the transfer the largest portion of the unprogrammed appropriations under the 2024 General Appropriations Act is allocated to social projects, particularly health initiatives.
“As of December 2024, about P46 billion had been devoted under the unprogrammed appropriations for social, more particularly, health projects,” he said.
PhilHealth’s remittance followed the national government’s implementation of Special Provision 1(d) of the 2024 General Appropriations Act, which authorizes the use of government-owned and -controlled corporations’ fund balances to finance key programs in health, social services and infrastructure under the unprogrammed appropriations.
The 2024 GAA mandates the Department of Finance to implement the provision, leading to the issuance of DOF Circular No. 003-2024.
Of the P60 billion remittance, 78 percent, or P46.61 billion, went to key health and social services.
According to DOF data, P27.45 billion was used to settle long-overdue Public Health Emergency Benefits and Allowances for health care and non-health care workers who served during the COVID-19 pandemic.
Another P10 billion was used to provide medical assistance to indigent and financially incapacitated patients.
About P4.1 billion financed the procurement of medical equipment for Department of Health hospitals, local government unit hospitals and primary care facilities.
About P3.37 billion funded the construction of three DOH health facilities, while P1.69 billion went to the Health Facilities Enhancement Program.
The remaining P13 billion funded government counterpart financing for foreign-assisted infrastructure and “social determinants for health” projects. These projects aim to improve health care delivery in remote areas and enhance Filipinos’ well-being through food security.
Examples of these projects include the Panay-Guimaras-Negros Island Bridges, the Metro Manila Subway Project, the Philippine Multi-Sectoral Nutrition Project, the Mindanao Inclusive Agriculture Development Project, the Cebu-Mactan Bridge and Coastal Road Construction Project, the North-South Commuter Railway System, the Support to Parcelization of Lands for Individual Titling Project, the Teacher Effectiveness and Competencies Enhancement Project and the Philippine Fisheries and Coastal Resiliency Project.
Guevarra also said the transfer of PhilHealth’s funds spurred its recent expansion of health benefits.
“PhilHealth has been increasing its benefit packages even before Special Provision 1(d) came into effect, and more so after that special provision was enacted as part of the unprogrammed appropriations. We have seen [benefits] increase over the past several months,” he said.
As of 2024, PhilHealth had P498 billion in cash, which Guevarra said is enough to continue increasing its inpatient, outpatient and special benefit packages.
Oral arguments on the consolidated petitions will resume March 4, 2025.
