By Aubrey Rose A. Inosante and Chloe Mari A. Hufana, Reporters
THE GOVERNMENT will restore the P60 billion in excess funds of the Philippine Health Insurance Corp. (PhilHealth) as “savings” in the proposed 2026 national budget, Finance Secretary Ralph G. Recto said.
Mr. Recto, who defended the National Government’s decision to reallocate the funds before the Supreme Court (SC), is now under orders from President Ferdinand R. Marcos, Jr. to restore the funds to PhilHealth.
“(Savings) will be included in the NEP26 (National Expenditure Program for 2026). We are also looking for legal authority to do it this year,” he told BusinessWorld in a Viber message over the weekend.
The Department of Finance (DoF) said it issued a “solicited opinion” supporting the restoration of the funds, citing PhilHealth’s improved revenue position and the availability of savings from other agencies after the termination of flood control projects.
The DoF’s response came after Mr. Marcos on Saturday ordered the return of the P60 billion to PhilHealth, which would allow the agency to expand its benefit packages and strengthen the Zero Balance Billing program.
The President acknowledged public concerns that the transfer of excess funds could affect PhilHealth’s programs and services, saying such worries are understandable given that healthcare involves life-and-death situations.
“No matter how much we explained, no matter how much we showed that PhilHealth has been expanding the services it covers, people still had fears that services might be reduced,” Mr. Marcos said.
The President’s move may render the SC’s ruling on the issue moot and academic.
The SC has yet to issue a ruling on three petitions questioning the legality of the original P60-billion transfer from PhilHealth to the Bureau of the Treasury in 2024.
Asked if the agency will wait for the SC decision, Mr. Recto said: “We’re following PBBM’s (President Marcos) directive.”
‘FACE-SAVING MEASURE’Meanwhile, analysts said Mr. Marcos’ decision to return P60 billion to PhilHealth is a “face-saving” measure and is aimed at easing public discontent amid ongoing corruption investigation in public works projects.
“I can only assume that this is intended to further ease the growing tension and disillusionment among the people caused by the flood control mess,” said Arjan P. Aguirre, a political analyst at the Ateneo de Manila University, via Facebook Messenger.
“In the coming days, it may be used to create the impression that Marcos, Jr. cares about the people’s welfare — particularly health concerns — and that he is also fulfilling his SONA (State of the Nation Address) promise. This is all about optics and projecting a positive image of the President,” he added.
On Sunday, thousands of Filipinos took to the streets to protest massive corruption in government.
Former Health adviser Anthony C. Leachon called the move a “face-saving measure” amid growing public outrage over corruption.
“It must not preempt the Supreme Court’s decision on the matter. Without a ruling, the petition risks being declared moot — setting a dangerous precedent for future abuse,” he said in a statement on Sept. 21.
“If the Court affirms that the P60-billion transfer was unconstitutional, then how much more indefensible is the zero subsidy for PhilHealth in the 2025 budget? That is not just a fiscal error — it is a moral failure.”
Mr. Leachon also questioned the DoF’s role in the original transfer, saying the agency is now attempting to “wash its hands” of responsibility.
He also noted that PhilHealth was not the only institution forced to surrender reserves, and the Philippine Deposit Insurance Corp. remitted over P107 billion justified as “unrestricted funds” for infrastructure and social programs.
“If the DoF is truly sincere, it should return those funds too,” Mr. Leachon added.
Former Finance Undersecretary Cielo D. Magno said a SC ruling is still necessary to “prevent the illegal diversion of PhilHealth funds from happening again.”
“Let’s keep raising our voices and staying vigilant,” she said in a Facebook post on Sept. 20.
The Federation of Free Workers (FFW) and the Nagkaisa Labor Coalition welcomed Mr. Marcos’ order to return P60 billion to the state health insurer but stressed that the case before the High Court is still alive.
FFW and Nagkaisa Labor Coalition are intervenors in G.R. No. 274778, with petitioners including Ms. Magno, former Senator Aquilino L. Pimentel III, and the Philippine Medical Association, among others.
“This is no small amount, and returning it to PhilHealth is already a moral and political victory for workers and the people. On the contrary, it strengthens our case,” FFW President and Nagkaisa Chair Jose Sonny G. Matula said via Viber.
He urged the High Court to declare the transfer unconstitutional, warning that without such a ruling the same diversion of funds could recur.
He also called on the government to source the refund from budgetary savings — particularly from delayed or suspended public works projects — rather than through new taxes or borrowings that would burden workers.
SC Spokesperson Camille Sue Mae L. Ting did not immediately reply to a Viber chat seeking comment.
