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Manila Bulletin devider Philippines devider National devider Rodriguez flags transfer of P89.9-B PhilHealth funds to national treasury; here's why

Rodriguez flags transfer of P89.9-B PhilHealth funds to national treasury; here's why

Published Aug 10, 2024 04:37 am

At A Glance

  • The transfer of P89.9 billion in PhilHealth funds to the national treasury violates Republic Act (RA) No. 11223, or the Universal Health Care Act, according to Cagayan de Oro City 2nd district Rep. Rufus Rodriguez. 

FB_IMG_1710246273718.jpgCagayan de Oro City 2nd district Rep. Rufus Rodriguez (Facebook)



The transfer of P89.9 billion in PhilHealth funds to the national treasury violates Republic Act (RA) No. 11223, or the Universal Health Care Act, according to Cagayan de Oro City 2nd district Rep. Rufus Rodriguez.

Romualdez, a legal luminary in the House of Representatives, called the chamber's attention on the matter via House Resolution (HR) No.1903.

PhilHealth or the Philippine Health Insurance Corporation is that State health insurer.

Rodriguez said the law clearly provides that excess PhilHealth funds shall be used to increase the health care benefits of millions of members and to reduce their monthly premium contribution.

He quoted Section 11 of RA No. 11223: “Philhealth shall set aside a portion of its accumulated revenues not needed to meet the cost of the current year’s expenditures as reserve funds: Provided that the total amount of reserves shall not exceed a ceiling equivalent to the amount actuarially needed for two years’ projected program expenditures; Provided further that whenever actual reserves exceed the required ceiling at the end of the fiscal year, the excess of the Philhealth reserve fund shall be used to increase the program’s benefits and to decrease the amount of members’ contributions.”

He said it is clear that Department of Finance (DOF) Circular 003-2024 authorizing the transfer of PhilHealth’s P89.9 billion to the treasury “is violative of the Universal Health Care Act".

The Mindanaoan said a provision of the 2024 General Appropriations Act (GAA) mandating government corporations to remit their excess funds to the national treasury cannot be used as basis for the transfer.

Rodriguez, a former law dean, invoked the ruling of the Supreme Court in Philconsa, et al vs. Salvador Enriquez, et al (GR No. 113105). Enriquez was a former Department of Budget and Management (DBM) secretary.

“The Supreme Court (SC) ruled that a provision in an appropriations act cannot be used to repeal or amend other laws,” he said.

He said the transfer of the PhilHealth funds contravened two other laws, RA No. 11467 and RA No. 10963, which allocate portions of revenues from tobacco excise taxes, e-cigarettes and sweetened beverages to PhilHealth for its members’ benefits.

Earlier, Rodriguez urged President Marcos to order the return of P89.9 billion to PhilHealth.

“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 PhilHealth members, not some personalities who may want to dip their fingers into the P90-billion fund,” he said.

He also criticized Department of Health (DOH) Secretary Teodoro Herbosa for failing to protect PhilHealth funds as the agency’s board chairman and as chief implementer of the universal health care law.

Several health care advocates have challenged the transfer before the SC.

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