The Supreme Court has raised serious concerns over Congress’ authority to control the budget of the Philippine Health Insurance Corp. (PhilHealth), questioning the legality of transferring P89.9 billion in excess funds to the national treasury.
During oral arguments on Tuesday, Associate Justice Alfredo Benjamin Caguioa scrutinized the Office of the Solicitor General’s position that lawmakers have full discretion in allocating PhilHealth’s budget through the General Appropriations Act (GAA). He argued that this interpretation undermines the mandates of the Universal Health Care Act (UHA) and sin tax laws, which earmark specific funds for health care.
Congress vs. Sin Tax Laws
Caguioa pointed out that four sin tax laws explicitly state that a portion of government revenues must be allocated solely for the UHA. He argued that even if these funds pass through the GAA, their designated purpose should not be altered.
He also criticized the inclusion of a controversial provision in the 2024 GAA that allows unprogrammed appropriations by diverting excess reserve funds from government-controlled corporations like PhilHealth. This provision, which was not originally present in the House or Senate versions of the budget bill, was inserted during the bicameral conference committee deliberations.
He questioned whether a single budgetary provision could override years of legislative work dedicated to ensuring universal health care funding.
Justice Lopez’s Personal Experience With PhilHealth
During the hearing, Associate Justice Jhosep Lopez shared his own struggles with PhilHealth while undergoing cancer treatment. Diagnosed with esophageal cancer that later spread to his lungs, Lopez revealed that his hospital bills reached nearly P7 million. However, PhilHealth covered only P50,000—less than one percent of his total expenses.
Lopez also highlighted the high cost of his ongoing treatments, which PhilHealth reportedly refused to cover. He emphasized that the UHA was designed to reduce out-of-pocket medical expenses and prevent financial distress for Filipino families.
In response, PhilHealth Senior Vice President Renato Limsiaco Jr. said the agency had increased its case rate coverage by 30% in early 2024 and would raise it by another 50% by year-end. Lopez welcomed the development but lamented that it had come too late for his own treatment.
Protests and Legal Challenges
Outside the Supreme Court in Baguio City, health advocacy groups protested against the transfer of PhilHealth funds to the national treasury. Organizations such as the Health Alliance for Democracy (HEAD) and Tongtongan Ti Umili called for the immediate return of the funds, arguing that the move violated the Universal Health Care Act.
Activists accused the government of treating PhilHealth as a “cash cow” while shifting the financial burden of health care onto individual members. They urged authorities to use PhilHealth’s funds to increase benefits and lower premium contributions rather than diverting them for non-health-related expenses.
Several petitions challenging the constitutionality of the fund transfer have been filed before the Supreme Court. Chief Justice Alexander Gesmundo announced that oral arguments on the case would continue throughout the day in an effort to reach a resolution.
As the legal battle unfolds, PhilHealth members and health care advocates remain on edge, awaiting a ruling that could impact the future of the country’s health insurance system.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.