There is no legal impediment in the transfer of the Philippine Health Insurance Corporation (PhilHealth) from the Department of Health (DOH) to the Office of the President (OP), the Department of Justice (DOJ) said.
In a legal opinion, the DOJ said: “We advise that there is no legal issue on the possible transfer of the PhilHealth to the OP as it is a legitimate exercise of the President’s power of control over the executive department, bureaus and offices, which justifies an executive action to carry out reorganization measures to ensure an efficient bureaucracy.”
The legal opinion was issued by DOJ Undersecretary Raul T. Vasquez and addressed to DOH Undersecretary Kenneth G. Ronquillo.
The DOH sought the legal opinion after the health department proposed back in May the transfer of PhilHealth’s supervision from the DOH to the OP for a more efficient management of healthcare programs.
“The 1987 Constitution expressly confers to the President the power of control over the executive departments, bureaus, and offices,” Vasquez said.
“Corollary, the Constitution’s express grant of power of control in the President justifies an executive action to carry out reorganization measures under a broad authority of law,” he added.
Vasquez noted that “the transfer of the PhilHealth to the OP may be done through the issuance by the President of an executive order, as was the approach in similar cases.”
Among other concerns, the DOH asked the DOJ how the transfer would affect the Joint Congressional Oversight Committee that has been tasked under the law “to conduct a regular review of the implementation of this Act which shall entail a systematic evaluation of the performance, impact or accomplishments of this Act and the performance of the various agencies involved in realizing universal health care, particularly with respect to their roles and functions.”
Vasquez said that while the joint congressional committee exercises oversight powers in the implementation of the National Health Insurance Program (NHIP) and its plans, “it is still the PhilHealth, as mandated by Republic Act No. 7875 (the National Health Insurance Act of 1995), as amended, which will submit to the President of the Philippines and to both Houses of Congress, the Annual Report on the implementation of the NHIP.”
Also, the DOH expressed concern on how the transfer of PhilHealth to the OP will affect the composition of the PhilHealth’s board of directors.
Vasquez said: “The exercise of the power of reorganization recognizes the President’s authority to effect organizational changes in a manner he deems fit to carry out his policies and directives in the department or agency under the executive structure, which may entail altering or maintaining the current administrative structure including the composition of personnel or its Board of Directors.”