MANILA, Philippines– The Supreme Court of the Philippines continued oral arguments on Tuesday regarding the transfer of P89.9 billion from the Philippine Health Insurance Corporation (PhilHealth) reserves to the national treasury for unprogrammed appropriations.
The Court questioned the necessity of reallocating funds initially designated for healthcare services to projects already funded by the national budget, such as infrastructure, peace initiatives, and the military’s modernization program.
Associate Justice Amy Lazaro-Javier led the inquiries, emphasizing that PhilHealth’s funds should be used exclusively for healthcare-related purposes.
She pointed out that the Department of Finance (DOF) indicated these funds were intended for urgent national projects, but several of the listed projects, such as the Panay-Guimaras-Negros (PGN) Island bridges, were already fully funded through external loans, raising questions about the urgency of the transfer.
In response, Solicitor General Menardo Guevarra, representing the House of Representatives and Senate, explained that Congress considered the readiness of projects for implementation within the fiscal year.
He stated that if a project was deemed non-implementable, it could be moved to unprogrammed appropriations, even if fully funded.
However, Justice Lazaro-Javier further pressed Guevarra, questioning whether any funds from the loan for the PGN bridges project had been spent, as the project had not yet commenced.
Guevarra acknowledged that no funds had been spent, prompting the question, “Where is the money?”
The Court also raised concerns over the inclusion of the peace process in the unprogrammed appropriations, noting that the 2024 General Appropriations Act already allocated funds for the management of the peace process.
Justice Lazaro-Javier questioned whether the peace process fell under PhilHealth’s mandate, and while the Office of the Solicitor General (OSG) refrained from speculating on the reasons for the allocation, they argued that the inclusion of such projects in the unprogrammed appropriations was not definitive and would depend on the implementation by the relevant agencies.
Meanwhile, members of the Health Workers Party-list rallied outside the Supreme Court, voicing strong opposition to the transfer of PhilHealth funds.
They argued that the redirection of the P89.9 billion would undermine public healthcare services and exacerbate the challenges faced by Filipinos, particularly those from low- and middle-income backgrounds.
The party-list expressed concerns about PhilHealth being run as a business venture rather than a government service, and called for the funds to be used directly for healthcare services instead of discretionary projects.
