Manila: Finance Secretary Ralph Recto asserted on Thursday that the redirection of Philippine Health Insurance Corporation’s (PhilHealth) excess funds to the national treasury is “legal, moral, and economically sound.” During the fifth oral argument at the Supreme Court concerning the consolidated petitions challenging the constitutionality of transferring PHP89.9 billion in unused funds, Recto emphasized the necessity and legality of this move.
According to Philippines News Agency, Recto highlighted the endorsement of the policy by several government bodies, including the Office of the Solicitor General, the Office of the Government Corporate Counsel, the Governance Commission for GOCCs, and the Commission on Audit (COA). He also mentioned that the PhilHealth Board approved the transfer of excess funds, ensuring that members’ contributions remained untouched.
Recto detailed that of the PHP60 billion remittance from PhilHealth, 78 percent was allocated to essential health projects, such as compensating frontliners, constructing hospitals, and providing access to medicine for the impoverished. “The 60 billion pesos that was returned didn’t vanish – it paid frontliners, built hospitals, and gave the poor access to medicine. Every centavo remitted was converted into service. That is fiscal justice,” he stated.
Furthermore, Recto explained that the remaining PHP13 billion funded government counterpart financing for foreign-assisted infrastructure and health projects, aiming to improve healthcare services in remote areas. He refuted claims of PhilHealth’s bankruptcy, attributing the confusion to inaccurate Insurance Contract Liabilities (ICLs) flagged by the COA, which are not actual debts but provisions for future obligations.
Recto noted that PhilHealth’s financial health has significantly improved, with accumulated net income growing from PHP109.95 billion in 2019 to PHP464.27 billion in 2023. Despite a PHP60 billion remittance, the agency retains PHP498 billion in cash for future healthcare packages. Recto concluded by stressing the importance of utilizing these funds to alleviate public suffering, terming negligence as letting billions remain idle.
