PhilHealth admits unpaid claims before P60-B transfer to treasury

MANILA, Philippines — A senior executive at the Philippine Health Insurance Corp. (PhilHealth) admitted that not all monetary claims were settled before it transferred P60 billion in excess funds to the National Treasury.
PhilHealth Senior Vice President Renato Limsiaco Jr. made the statement during oral arguments at the Supreme Court on Tuesday, February 25, as petitions challenging the transfer of so-called excess funds were heard.
Associate Justice Amy Lazaro-Javier asked Limsiaco if all claims had been settled before the fund transfer, to which Limsiaco replied, “Your Honor, in a certain cut-off date, your honor, definitely hindi natin mababayaran lahat (not all would be paid)." He explained that the claims would still then be at the hospitals.
When pressed further, he admitted, "Yes, your honor," acknowledging that not all claims were paid before the funds were remitted.
The justice’s inquiry stemmed from a comment submitted by the Office of the Solicitor General on September 2, 2024 that unpaid claims from hospitals, doctors and members had already been recorded and acknowledged before PhilHealth transferred its P60 billion fund balance to the treasury.
Before the arguments. The Supreme Court had previously issued a halt order on Oct. 29, 2024, suspending the transfer of the remaining P29.9 billion in unused PhilHealth funds.
Earlier transfers included P20 billion on May 10, P10 billion on August 21, and P30 billion on October 16. These actions prompted several individuals to file petitions challenging the legality of the fund transfers.
The oral arguments for these petitions began on February 4.
Other petitions. Another petition has been filed with the Supreme Court challenging provisions in the 2025 General Appropriations Act that excluded subsidies for PhilHealth. Former independent director of PhilHealth Tony Leachon argued that this zero-subsidy allocation violates laws mandating government support for universal healthcare.
“There are better ways to address PhilHealth’s inefficiencies rather than resorting to subsidy cuts,” Leachon said in a statement. “At a time when the country’s healthcare system is already grappling with numerous issues, the removal of PhilHealth’s funding creates an impression that the government has lost its commitment to provide equitable access to quality healthcare.”
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