Recto: SC order on P60B PhilHealth funds poses economic risks

Finance Secretary Ralph Recto stated on Wednesday that the government would comply with a Supreme Court order to return P60 billion in idle PhilHealth funds but warned about potential economic repercussions.

Recto justified during oral arguments before the SC in Baguio City on Thursday that the returned P60 billion was used for health-related projects, including allowances for COVID-19 frontliners and medical assistance for poor Filipinos.

PhilHealth was ordered to return P89.9 billion excess funds to the national treasury, with P29.9 billion still under a temporary restraining order from the SC; however, contributions of paying members were left untouched.

Recto emphasized that the returned funds were government subsidies and not member contributions, stressing that PhilHealth's daily operations and benefit packages remain intact and will be improved.

He compared the current strategy to Bayanihan efforts during the pandemic, aiming to mobilize all available resources to help the economy recover faster and reduce poverty.