PhilHealth fund case going to SC; premiums cut sought

MANILA, Philippines — Advocates are expected to mount a legal challenge to the government’s move to transfer excess funds from the Philippine Health Insurance Corp. (PhilHealth) and other government-owned and controlled corporations (GOCCs) to finance unprogrammed appropriations in this year’s budget.

In an interview with “Storycon” on One News yesterday, former finance undersecretary Cielo Magno said they would file a case before the Supreme Court (SC) to question the legality of a provision in the 2024 General Appropriations Act (GAA).

The said provision, which Magno said was inserted by the bicameral conference committee, allowed the use of fund balance from GOCCs to finance “unprogrammed appropriations” or government projects without budget allocation.

Magno, an economics professor at the University of the Philippines, said the inserted provision in the budget law may be considered a “rider provision” that is inconsistent with the subject matter of the legislation.

“It’s illegal because what they are doing with this provision is to essentially amend all the charters, all these laws that created the GOCCs,” she said.

“It is clear in the charter of PhilHealth and in the Universal Healthcare Law that if PhilHealth has reserve funds, you can only use it for two things: either you increase the scope of service or benefits provided to the people or you reduce the premium of the members,” she added in Filipino.

Excess funds of PhilHealth worth P89.9 billion were diverted to fund unprogrammed appropriations this year, which led health advocates and budget watchdogs to call for a probe into the Department of Finance’s action.

The Federation of Free Workers (FFW) echoed Magno’s sentiment as it called for the state health insurer to reduce workers’ contributions.

“The meager take-home pay of workers should not be deducted. It is justified for these salary deductions to be reduced,” FFW president Sonny Matula said yesterday.

PhilHealth members’ premium contributions increased to five percent from four percent this year. – Mayen Jaymalin