PhilHealth’s Excess Funds Of PHP60 Billion Used For Health Programs

Solicitor General Menardo I. Guevarra emphasized before the Supreme Court that the majority of the Philippine Health Insurance Corporation’s (PhilHealth) PHP60 billion excess fund remittance to the National Treasury was used to finance critical health and social service programs.

The Panay-Guimaras-Negros Island Bridges is a project funded under the unprogrammed appropriations for government counterpart financing. I Image: DPWH

“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 stated during the second round of oral arguments in the Supreme Court5, regarding the consolidated petitions challenging the constitutionality of PhilHealth’s fund transfer.

“As a matter of fact, as of December 2024, a total of approximately PHP46 billion had already been allocated under the unprogrammed appropriations for social—more particularly, health—projects,” he elaborated.

PhilHealth’s remittance followed the national government’s implementation of Special Provision 1(d) of the 2024 General Appropriations Act (GAA), which authorizes the utilization of fund balances from government-owned and -controlled corporations (GOCCs) to finance key programs in health, social services, and infrastructure under the Unprogrammed Appropriations.

The 2024 GAA mandates the Department of Finance (DOF) to implement this provision, leading to the issuance of clear guidelines through DOF Circular No. 003-2024.

Of the PHP60 billion remitted from PhilHealth’s excess funds, 78 percent, or PHP46.61 billion, was allocated to essential health and social services aimed at improving the lives of Filipinos.

According to DOF data, the largest portion—PHP27.45 billion—was used to settle long-overdue Public Health Emergency Benefits and Allowances for healthcare and non-healthcare workers who served during the COVID-19 pandemic.

Additionally:

• PHP10 billion was allocated for medical assistance to indigent and financially incapacitated patients.

• PHP4.10 billion funded the procurement of various medical equipment for Department of Health (DOH) hospitals, local government unit (LGU) hospitals, and Primary Care Facilities.

• PHP3.37 billion was allocated for constructing three DOH health facilities.

• PHP1.69 billion went to the Health Facilities Enhancement Program.

The remaining PHP13 billion was used to finance government counterpart funding for foreign-assisted infrastructure and “social determinants of health” projects. These initiatives aim to accelerate healthcare service delivery in remote areas and improve public health through food security and other essential services.

Examples of projects funded under the unprogrammed appropriations for government counterpart financing include:

• The Panay-Guimaras-Negros Island Bridges

• The Metro Manila Subway Project

• The Philippine Multi-Sectoral Nutrition Project

• The Mindanao Inclusive Agriculture Development Project

• The Cebu-Mactan Bridge and Coastal Road Construction Project

• The North-South Commuter Railway System

• The Support to Parcelization of Lands for Individual Titling Project

• The Teacher Effectiveness and Competencies Enhancement Project

• The Philippine Fisheries and Coastal Resiliency Project

  
  

Guevarra also emphasized that PhilHealth’s transfer of excess funds has contributed to its recent expansion of health benefits.

“PhilHealth has been increasing its benefit packages even before Special Provision 1(d) took effect, and even more so after its enactment as part of the unprogrammed appropriations. We have seen benefits increase over the past several months,” he said.

As of 2024, PhilHealth holds nearly half a trillion pesos—PHP498 billion—in cash reserves, ensuring its ability to continue expanding inpatient, outpatient, and specialized benefit packages.

The Supreme Court will resume oral arguments on the consolidated petitions on March 4, 2025.