The Supreme Court has issued a temporary restraining order (TRO) preventing the further transfer of unused funds from the Philippine Health Insurance Corporation (PhilHealth) to the national treasury, following multiple petitions challenging the fund reallocation. The TRO, issued on October 29, halts the last installment of ₱29.9 billion scheduled for transfer in November. This comes after PhilHealth had already transferred ₱60 billion of the ₱89.9 billion mandated by the Department of Finance, with tranches completed in May, August, and October.
PhilHealth spokesman Ish Pargas expressed respect for the court’s decision and affirmed PhilHealth’s commitment to its mandate of supporting Filipinos with health coverage under the Universal Health Care Law. “We remain focused on our mission to provide all Filipinos with adequate financial protection against health risks,” Pargas stated.
The High Court’s decision follows consolidated petitions from 1Sambayan, Bayan Muna, and Senate Minority Leader Koko Pimentel, which argue that the Constitution prohibits redirecting public funds allocated for specific purposes. Retired Supreme Court Justice Antonio Carpio, representing 1Sambayan, welcomed the TRO, underscoring its potential impact on preserving essential health services for economically disadvantaged Filipinos. Carpio urged the Executive Branch to consider returning previously transferred funds to PhilHealth.
The Department of Finance’s order to remit these funds, originally issued in April, cited provisions in the 2024 General Appropriations Act allowing the government to redirect reserve funds from government-owned corporations to cover budget shortfalls. Finance Secretary Ralph Recto clarified during an August Senate panel that while the administration respects the court’s ruling, any new legislation from Congress could redirect PhilHealth funds back to the agency if required.
Healthcare groups and advocates argue that under the Universal Health Care Act, excess PhilHealth funds should be reinvested to expand health benefits or reduce costs for members, particularly to address gaps in healthcare services nationwide.