Legarda moves to ensure PhilHealth funds are fully restored and protected

In her explanation of the vote on the 2026 national budget, Senator Loren Legarda delivered a firm call for the full restoration of the ₱60 billion to the Philippine Health Insurance Corporation (PhilHealth) reserve fund, asserting that anything less would fall short of the Supreme Court’s directive and the spirit of fiscal accountability.

“The Supreme Court has now spoken with clarity on the matter of the ₱60 billion withdrawn from PhilHealth pursuant to Special Provision 1(d), Chapter XLIII of the 2024 General Appropriations Act, and Department of Finance Circular No. 003-2024. The Court declared the provision unconstitutional and directed, and I quote: As a consequence of the unconstitutional transfer of the subject PhilHealth fund to the National Treasury pursuant to Special Provision 1(d) of the 2024 GAA and DOF Circular 003-2024, the remitted funds amounting to ₱60 billion to PhilHealth must be returned to the coffers of PhilHealth,” Legarda said.

The four-term senator noted that while the House of Representatives realigned ₱60 billion from the Department of Public Works and Highways budget to PhilHealth, the amount was earmarked for benefit package improvements rather than returned to the reserve fund.

“The bicameral conference must confront the question of whether this satisfies the Court’s directive to ‘return’ the full amount to PhilHealth,” Legarda explained.

Legarda also raised the issue of unremitted allocations due to PhilHealth, including ₱129.96 billion in sin tax earmarks from 2023 to 2026, and ₱106.95 billion in statutory shares from PAGCOR and PCSO.

“These practices—though indirect—operate in effect as fund diversions similar to what transpired in 2024. I will file a bill to ensure that sin tax earmarks and the statutory shares from PAGCOR and PCSO are automatically appropriated and released to PhilHealth, strengthening the integrity of its funding streams,” Legarda said.

To clearly uphold the Supreme Court ruling, Legarda pressed the Bicameral Committee to amend the current allocation.

“I urge the Bicameral Committee to insert a special provision amending the ₱60 billion currently allocated for benefit package improvements to be restored in PhilHealth’s reserve fund—untagged from specific benefit items, treated as a return of reserves rather than a program expansion, and placed under the authority of the PhilHealth Board pursuant to the Universal Health Care Act.”

Legarda closed her manifestation with a reminder of the Congress’ responsibility to comply with the Higher Court’s decision and to safeguard PhilHealth’s reserves.

“This amendment is necessary to uphold both the letter and spirit of the Supreme Court’s ruling. It avoids forcing further budget cuts on any other agency, protects the integrity of the national budget process, and ensures that PhilHealth can manage its funds and deploy its reserves sustainably based on actuarial principles,” she concluded. (30)