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10/20/2025

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LAWIN.news

House digs into PhilHealth fund transfer in budget investigation

by LAWIN.news August 19, 2025
written by LAWIN.news August 19, 2025
Photo credit: Business World
71

The House of Representatives is investigating the transfer of funds from the Philippine Health Insurance Corporation (PhilHealth) as part of the 2026 national budget discussions.

Finance Secretary Ralph Recto stated that the government is ready to return billions of pesos in PhilHealth’s unused funds if the Supreme Court orders it.

Recto issued a warning that returning these funds could increase the country’s fiscal deficit and pose a risk to its credit rating. The transfer of PhilHealth’s excess funds has sparked legal challenges, with the Supreme Court set to review the constitutionality of the move.

Recto emphasized that the redirection of PhilHealth’s funds is both legal and economically sound. He assured that the use of PhilHealth’s dormant funds would not negatively impact the health insurance corporation’s members or its plans to expand benefit packages.

The government has committed to comply should the Supreme Court rule against the transfer, but Recto highlighted potential financial implications. The discussion centers on whether the unused funds should be returned to PhilHealth or remain allocated for other government expenditures.

The House probe is part of a broader examination of the 2026 budget, considering the future allocation of PhilHealth’s funds. The debates continue as legal proceedings unfold regarding the funds’ transfer to the national treasury.

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