Lawmaker Calls for Return of PhilHealth Surplus FundsLawmaker Calls for Return of PhilHealth Surplus Funds A prominent lawmaker has urged President Ferdinand Marcos Jr. to order the return of nearly 90 billion pesos in surplus funds from the Philippine Health Insurance Corp. (PhilHealth), which were transferred to the national treasury. Representative Rufus Rodriguez of Cagayan de Oro expressed concern that the funds, which belong to PhilHealth members, are being misused and should instead be used to improve healthcare facilities, increase coverage, or provide additional services. Rodriguez’s comments follow the issuance of Memorandum Circular No. 003-2024 by the Department of Finance, which directs Government-Owned Corporations (GOCCs), including PhilHealth, to channel unused funds to the national treasury for unprogrammed allocations. The surplus funds, which have accumulated over the past three years, were originally earmarked for healthcare purposes. However, the circular allows the government to use the funds for unexpected events or other purposes. Senator Christopher “Bong” Go and the Makabayan bloc have questioned the legality and propriety of the transfer, arguing that it takes away from the primary mission of PhilHealth to provide financial assistance to patients. In contrast, House Committee on Ways and Means Chairman Joey Salceda and Committee on Appropriations Chairman Elizaldy Co support the DoF’s move, claiming that the funds would be better spent on government investments. As of May, 20 billion pesos of the surplus had already been transferred to the national treasury, a decision approved by PhilHealth board of directors chairman Teodoro Herbosa. However, Rodriguez criticized Herbosa for not opposing the transfer and emphasized that the government should not interfere with the funds that members have paid for their health insurance. The lawmaker urged President Marcos Jr. to do justice to PhilHealth members by ordering the return of the funds and ensuring that they are used for their intended purpose.
A prominent lawmaker on Monday called on President Ferdinand Marcos Jr. to order the return of nearly 90 billion pesos in surplus funds of the Philippine Health Insurance Corp. (PhilHealth), which were transferred to the national treasury to finance unprogrammed allocations.
“The President will do justice to the more than 104 million members of PhilHealth if he orders the return of the funds. The money belongs to the members of PhilHealth, not to a so-called ‘general fund’ of the national government,” lamented Cagayan de Oro Rep. Rufus Rodriguez.
According to Rodriguez, the funds could be used to improve health care facilities for PhilHealth members, increase health insurance coverage or provide additional services currently not covered by the state-run health insurance system.
“This way, it is the members who benefit from their money, and not some personalities who dip their fingers into the 90 billion peso ‘general fund’,” he stressed.
Rodriguez’s comments added to growing concerns among lawmakers over Memorandum Circular No. 003-2024, issued by the Department of Finance (DoF).
The circular directs the GOCCs (Government-Owned Corporations), including PhilHealth, to channel their unused funds to the national treasury to finance unprogrammed appropriations in Republic Act No. 11975 or the General Appropriations Act of 2024.
PhilHealth’s surplus funds amount to P89.9 billion. The sum is a cumulation of the state health insurer’s dormant funds over the past three years.
Non-programmed allocations are ‘standby funds’ outside of regular allocations that the government can call upon in the event of unexpected events, such as disasters.
Some groups suspect that the unprogrammed allocations would be used to finance the Maharlika Investment Fund, the country’s sovereign wealth fund.
Senator Christopher “Bong” Go, chairman of the Senate Committee on Health, has previously questioned the legality and propriety of the transfer of funds, arguing that the budget originally earmarked for health care should continue to be used primarily to help patients with financial difficulties.
The Makabayan bloc launched a congressional investigation into the matter, alleging it was a “blatant attack” on PhilHealth funds.
Albay Rep. Joey Salceda and Ako Bicol Partylist Rep. Elizaldy Co, the chairmen of the House Committee on Ways and Means and the Committee on Appropriations respectively, meanwhile supported the DoF’s move.
Salceda and Co argued that the money should not remain with PhilHealth, but should be better spent on government investments, for example. They were convinced that this would reduce the pressure on the government to borrow money with the associated interest.
In May, P20 billion of the P89.9 billion had already been transferred to the national treasury. PhilHealth said the diversion of the funds was approved by Health Secretary Teodoro Herbosa, who chairs the board of directors.
Rodriguez, however, argued that the government should not interfere with “what it has paid for health insurance for millions of poor and elderly people and make these people pay for their health insurance.”
He also criticized Herbosa for not fighting to keep the funds in PhilHealth.
“Secretary Herbosa should explain this failure, which is inconsistent with his earlier statement that PhilHealth funds are for the welfare of its members,” he said.
