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Manila Bulletin devider Business devider DOF to comply with SC TRO on PhilHealth fund reallocation

DOF to comply with SC TRO on PhilHealth fund reallocation

Published Oct 29, 2024 08:54 am

By DERCO ROSAL

Finance Secretary Ralph G. Recto said that the Department of Finance (DOF) will abide by the Supreme Court’s (SC) temporary restraining order (TRO) that halts the utilization of Philippine Health Insurance Corp.’s (PhilHealth) idle, unused, and excess funds.

On Tuesday, Oct. 29, the SC issued the TRO in response to petitions challenging the DOF’s move to reallocate these funds to other government programs.

“We respect the Supreme Court’s intervention. As a public servant myself, I recognize the right of every citizen to seek redress from the courts. Rest assured that the DOF will fully comply with the order of the Supreme Court,” Recto said in a statement.

The Finance chief also reiterated that the DOF's action was based on the provisions of Republic Act No. 11975 or the General Appropriations Act (GAA) of 2024, which authorized the department to utilize idle funds of government-owned and controlled corporations (GOCCs).

Recto explained that the DOF, in consultation with legal experts, determined that PhilHealth’s unutilized government subsidies did not fall under the category of reserve funds or income restricted by the Universal Health Care Act.

“We reiterate that before proceeding with the utilization of GOCC idle funds, our agency exercised due diligence and consulted extensively with the government’s legal experts,” Recto said.

“These include the Governance Commission for GOCCs, the Government Corporate Counsel, and the Commission on Audit. These efforts were undertaken to ensure full compliance with our laws,” he added.

Meanwhile, petitioners praised the SC for issuing a TRO to prevent the further transfers of unused PhilHealth funds amounting to P89.9 billion.

“We thank the Supreme Court for protecting the right to health of PhilHealth members, all Filipino people,” Action for Economic Reforms (AER) said in a statement, Oct. 30.

The petitioners of General Registry (GR) 274778 support the SC’s order to halt the transfer of the remaining unused PhilHealth funds to the National Treasury.

The restraining order “will prevent the last tranche of P29.9 billion from being transferred from PhilHealth to the National Treasury this November,” AER said.

AER stated that this tranche was originally planned for transfer in May 2025 but was moved earlier by the DOF and/or PhilHealth.

A TRO is typically issued only in cases of extreme urgency where failing to issue it could lead to significant harm or irreparable injury, AER noted.

“The petitioners thus requested a TRO, arguing that the government’s diversion of members’ premiums will cause irreparable injury to PhilHealth members,” AER stated.

If allocated for premium relief or expanding benefits, the P89.9 billion in unused funds would have significantly lowered out-of-pocket costs and helped PhilHealth members, particularly the marginalized, AER further said.

Petitioners of the said order include Aquilino “Koko” Pimentel III, Ernesto Ofracio, Junice Melgar, Cielo Magno, Minguita Padilla, Dante Gatmaytan, Ibarra Gutierrez, Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO), Public Services Labor Independent Confederation Foundation, Inc. (PSLINK), and Philippine Medical Association (PMA).

Immediately after the issuance of the TRO, DOF Secretary Ralph G. Recto confirmed the department’s compliance, stating that their actions were in accordance with Republic Act No. 11975, which allows the use of idle funds from government-owned and controlled corporations (GOCCs).

Related Tags

Department of Finance (DOF) PhilHealth ralph recto Finance Secretary
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