PhilHealth excess funds to stay within health sector

Health Secretary Teodoro Herbosa assured the public on Tuesday that the excess funds of the Philippine Health Insurance Corp. (PhilHealth) amounting to P89.9 billion will still be used within the health sector.

Herbosa cited a promise made by Finance Secretary Ralph Recto to use these funds for health purposes, emphasizing that the P27.4 billion allocated for the healthcare allowance came from this surplus.

The Health Secretary explained that PhilHealth's excess funds were government subsidies meant to support indigent communities and senior citizens, adding theories about overestimation or changes in the number of eligible individuals.

Herbosa also addressed concerns raised by public health reform advocates and budget watchdogs who called on lawmakers to investigate the diversion of PhilHealth's surplus funds to 'unprogrammed appropriations'.

Independent health reform advocate Dr. Tony Leachon questioned DOF Circular No. 003-2024, which directs PhilHealth to transfer P89.9 billion in unused government subsidies to the national treasury.