Solicitor General Menardo I. Guevarra told the Supreme Court that the majority of the Philippine Health Insurance Corporation’s (PhilHealth) PHP 60 billion remittance to the National Treasury was allocated for critical health and social service programs.
“Under the purposes listed under the unprogrammed appropriations [of the General Appropriations Act of 2024], the biggest chunk goes to social projects, including health projects,” Guevarra said during the Supreme Court’s oral arguments on Feb. 25, 2025.
He noted that as of December 2024, about PHP 46 billion had been used for health-related initiatives.
The remittance stemmed from the national government’s enforcement of Special Provision 1(d) of the 2024 General Appropriations Act (GAA), which allows the use of government-owned and -controlled corporations’ (GOCC) fund balances for key health, social service, and infrastructure programs.
The Department of Finance (DOF) issued DOF Circular No. 003-2024 to implement the provision.
DOF data showed that 78% or PHP 46.61 billion of PhilHealth’s remitted funds were directed toward essential healthcare and social services.
The largest portion, PHP 27.45 billion, was used to settle overdue Public Health Emergency Benefits and Allowances for healthcare and non-healthcare workers who served during the COVID-19 pandemic.
Another PHP 10 billion funded medical assistance for indigent and financially struggling patients.
About PHP 4.1 billion was used for purchasing medical equipment for hospitals under the Department of Health (DOH), local government unit (LGU) hospitals, and primary care facilities.
Three new DOH health facilities were funded with PHP 3.37 billion, while PHP 1.69 billion went to the Health Facilities Enhancement Program.
The remaining PHP 13 billion was allocated for government counterpart funding of foreign-assisted infrastructure projects that impact health services and food security.
These include major infrastructure projects such as the Panay-Guimaras-Negros Island Bridges, the Metro Manila Subway, and the North-South Commuter Railway System.
Other funded projects address agriculture, nutrition, fisheries, and teacher training, ensuring broader social development linked to health.
Guevarra highlighted that PhilHealth has continued to expand its benefit packages, even before Special Provision 1(d) took effect.
“PhilHealth has been increasing its benefit packages even before Special Provision 1(d) came into effect, and more so after that special provision was enacted as part of the unprogrammed appropriations,” he said.
As of 2024, PhilHealth holds PHP 498 billion in cash reserves, ensuring its capacity to expand inpatient, outpatient, and special benefit packages.
The Supreme Court will resume oral arguments on the consolidated petitions regarding the fund transfer on March 4, 2025.
