Former Finance Secretary Margarito Teves defended the transfer of idle funds from the Philippine Health Insurance Corporation (PhilHealth) to the Bureau of Treasury (BTr) and stressed that the move allowed the government to use the money for critical public programs without undermining the state insurer’s ability to provide services.
Speaking before the Supreme Court as an amicus curiae during oral arguments recently,Teves said that the national government is in a better position to utilize these resources effectively.
“Returning the P89.9 billion idle funds of PhilHealth will not hamper its ability to provide services to all its members, including indigents and senior citizens,” Teves told the magistrates. “PhilHealth remains in a strong financial position, even with the return of this fund balance.”
“It has sufficient resources not only to continue covering the benefits of all its members, including indigent population, but also introduce better packages.”
As of the third quarter of 2024, PhilHealth had P682.2 billion in total assets, with P510 billion classified as liquid, more than enough to cover its existing and future obligations.
Teves emphasized that reallocating idle public funds is a sound fiscal strategy, noting that past administrations have taken similar measures.
He recalled that during the Ramos administration, all government offices and agencies were required to transfer all funds deposited with banks to the BTr. The Arroyo administration reviewed the cash balances of agencies and their need to maintain trust and special funds, while the Duterte administration reallocation idle resources to fund COVID-19 emergency response by virtue of Bayanihan 1 and 2 laws.
The former finance chief explained that the Marcos administration, still managing the fiscal impact of the pandemic, has had to make prudent financial decisions in order to maximize its resources and manage the country’s growing debt.
“The national government, at this stage, Your Honors, is in a better position to spend the P89.9 billion productively for government projects and programs. For example, this can be used to build more health facilities, such as barangay health stations and hospitals, as well as purchase medical equipment such as X-rays and CT scan machines. The P89.9 billion can also be used to fund education, nutrition, and growth-enhancing infrastructure programs and projects,” he pointed out.
He further assured the High Court that the government has the flexibility to restore or even increase PhilHealth subsidies in the future.
“National government agencies operate with the understanding that they have to use their budget. Consistent with that understanding, the national government can restore or even increase subsidies for PhilHealth, provided it demonstrates improved capacity to implement more generous benefit packages for its members,” he added.
Teves is among seven former finance secretaries—Cesar E. A. Virata, Roberto De Ocampo, Jose T. Pardo, Alberto G. Romulo, Jose Isidro N. Camacho, and Cesar V. Purisima—who have expressed support for the transfer of excess GOCC funds to the national treasury.
The Supreme Court will resume oral arguments on the case on February 25, 2025.
