Impounding of P89.9 billion PhilHealth ‘excess funds’ hit

MANILA, Philippines — As the Supreme Court (SC) is set to hold oral arguments today on the petitions opposing the transfer of the P89.9-billion “excess funds” of the Philippine Health Insurance Corp. (PhilHealth) to the national treasury, personalities in the health sector continue to decry the fund transfer as unjustified.

Juan Antonio Perez III, former executive director of the Commission on Population and Development, said the claim of PhilHealth having “excess funds” is misleading and therefore, the transfer of the alleged excess funds is unjustified.

Citing PhilHealth’s annual financial report certified by the Commission on Audit, Perez said that contrary to Finance Secretary Ralph Recto’s claim of excess funds, PhilHealth actually has negative equity, given its liabilities of P1.27 trillion.

Perez also pointed out that “the state insurer’s deficit is at P663 billion, the second highest among all government-owned and controlled corporations.”

“Thus, the PhilHealth fund transfer of P60 billion in 2024 was completely unjustified,” Perez declared at a forum in Quezon City.

PhilHealth last year transferred P20 billion in May, P10 billion in August and P30 billion last October. Part of the petition to the SC is the restoration of all the funds to PhilHealth.

Further, Perez lamented that Congress and the executive completely defunded PhilHealth, allocating zero budget for the state insurer in 2025.

“Defunding PhilHealth means the government refused to pay for the premiums of millions of PhilHealth’s indirect contributors. These ill-informed actions may already be causing difficulties among indirect members seeking health care,” said Perez.

“We are hoping that the SC will ensure that earmarked funds like sin taxes go where they are intended and make the executive and legislature follow the earmarks,” Perez added.

Concerned health groups have also pointed out that the most recent blow to Universal Health Care (UHC) is a policy that undermines the sin tax laws.

House Bill 11360, labeled by health advocates as the “Sin Tax Sabotage Bill,” was passed in the House plenary on second reading on Jan. 28.

HB 11360 lowers excise tax rates on tobacco and vape products.

The Sin Tax Coalition (STC) estimates that the bill will result in a P29-billion loss in revenue for UHC and other programs, and that it will lead to around 350,000 new smokers from 2026-2030 by making tobacco more accessible to the youth and the poor.

“This threatens the sustainability of PhilHealth’s funding for Universal Health Care,” the group said.

Antonio Dans, STC convenor, appealed to the country’s political leaders and local government officials not to “abandon” the UHC.

“Let us enforce and fight for health and health care so it will remain to be a right of the people,” Dans said. “Defunding PhilHealth and sabotaging the sin tax laws is outright immoral and anti-people.”