SC orders return of P60B to PhilHealth, stops further transfers

The Supreme Court has unanimously ordered the return of P60 billion to PhilHealth, ruling that its transfer to the national treasury in 2024 was unconstitutional.

The high court also permanently prohibited the transfer of the remaining P29.9 billion from PhilHealth's funds.

The decision stems from petitions filed by various groups and public health advocates seeking to block the Department of Finance's order to transfer P89.9 billion in "excess" PhilHealth funds.

Then-finance secretary Ralph Recto had justified the transfer, citing a special provision in the 2024 General Appropriations Act that allows the collection of excess funds from government-owned and -controlled corporations.

However, petitioners argued that this transfer violates the Universal Health Care Act, which states that PhilHealth's reserve funds cannot be used as a general fund of the national government.