(UPDATE) PRESIDENT Ferdinand Marcos Jr. on Saturday announced that P60 billion in excess funds that were transferred from the Philippine Health Insurance Corp. (PhilHealth) to the national treasury would be returned to the state-run health insurer to expand its services.
The President made the announcement during a visit to the Dr. Jose Fabella Memorial Hospital, as part of his inspection of the Zero Balance Billing program, which eliminates out-of-pocket expenses for PhilHealth members receiving medical services in public hospitals.
In his remarks, Marcos said the funds would be used to expand services and strengthen the state insurer’s operations.
“No matter what explanation we give, no matter what we show to prove that the services covered by PhilHealth are increasing, people still worry that the services might be reduced. Actually, we are increasing them,” Marcos said.
“That P60 billion will be returned to PhilHealth, not just to allay public worries, but because we will use it. We have savings; we will use it to further expand PhilHealth services,” he added.
PhilHealth President and CEO Dr. Edwin Mercado said the decision to return the excess funds was a sign of the government’s confidence in the agency’s ability to fulfill its mandate.
He assured the public that the funds will be used responsibly.
“You can count on us that this will be properly allocated to ensure the sustainable expansion and optimization of our benefits,” he added.
Last year, the Department of Finance ordered the transfer of PhilHealth’s excess funds amounting to P89.9 billion to the National Treasury, which were government subsidies that remained unused and not from member contributions.
Of this amount, P60 billion has already been transferred to state coffers, with only P29.9 billion remaining with PhilHealth before the Supreme Court issued a temporary restraining order on the fund transfer.
Marcos said that the restored funds would come from savings generated by various agencies, including the Department of Public Works and Highways.
He said that the move was consistent with his administration’s priority to strengthen the country’s health care system.
“Health care is the most important service the government can give. That is why we are strengthening and expanding it significantly,” he said.
Marcos said the return of PhilHealth’s funds was not merely a symbolic act but a practical step to ensure Filipinos have wider access to medical services.
He cited the Zero Balance Billing program as an example of how public health reforms were making services more accessible, noting Fabella’s role as a recognized center for neonatal care.
Public funds must be directed to programs that address life-and-death situations, Marcos said, reiterating that health remained central to his administration’s social agenda.
The President lauded the work of health workers, saying their dedication ensured that families could rely on hospitals without worrying about payment.
He also shared his personal experience during the Covid-19 pandemic, acknowledging how health care workers saved his life as well as “millions of others.”
“And what more can you ask of our health care workers than that? And you are continuing to save lives. You are continuing to give hope to our people, to our families. And that is the most important thing that we can do, to give hope,” Marcos said.
“So again, we have to congratulate all our health workers, because we know that you are all very hardworking, and we know how dedicated you are,” he added.
The Nagkaisa Labor Coalition welcomed the return of P60 billion to PhilHealth.
The labor group had challenged the transfer of funds from PhilHealth to the National Treasury last year.
“While we welcome this move, we also call on the Supreme Court to issue a definitive ruling on the matter. Only a categorical decision will ensure that this kind of diversion of PhilHealth funds will not be repeated under any administration,” the labor coalition said in a statement.
The labor coalition warned of political opportunism that could try to twist the development and to claim credit.
“The truth is clear: This victory was achieved through the persistent petitions, interventions, and protests of labor groups and civil society,” the group said.
