DAVAO CITY, Philippines – The Supreme Court ordered the Marcos Jr. administration to return the ?60 billion it has taken from PhilHealth Funds that were transferred to the National Treasury.
In a unanimous decision last December 5, the high court ruled that the move violated the Universal Health Care (UHC) Act that safeguards the use of health insurance reserves.
The court’s directive came from consolidated petitions from Bayan Muna and 1Sambayan coalition that questioned the 2024 national budget and a circular from the Department of Finance authorizing the transfer of PhilHealth’s excess reserve funds to the Treasury.
The high court found this transfer unlawful for diverting PhilHealth’s reserve funds meant for health and medical services for its members, to be used for national spending not related to public health.
“What use are the roads and the bridges, the infrastructure and the social programs, and any other project for that matter, when the people meant to enjoy them are sick and dying?” the SC pointed out in its 136-page decision.
Justice Lazaro-Javier, who penned the SC ruling, added: “The government does not have the prerogative to rank national projects at the cost of undermining a constitutionally guaranteed right, especially when the prioritisation of these other projects rests on false invocations of “urgency” and lack of funding….We must remain vigilant to ensure the fund is not only returned but also that the Marcos government desists from similar, illegal budgetary maneuvers in the future.”
The SC ordered Congress and the Executive to restore the ?60 billion through a specific appropriation in the 2026 national budget.
Bayan Muna Vice President Attorney Carlos Isagani Zarate, who was among the petitioners, called the SC decision a major victory in protecting the finances of PhilHealth at a time it is facing questions over long-term sustainability.
“This is a momentous victory for the rights of every PhilHealth member. The P60-billion (reserve) fund belongs to the Filipino people — it is their social health insurance contribution,” Zarate said.
The former lawmaker said the decision ensures people’s health contributions will be used for their hospitalization and medical needs.
“It should have been kept sacred and used exclusively to augment and strengthen our public healthcare system, not as a presidential ‘piggy bank’ to be arbitrarily transferred and used for other government projects.
Zarate urged Malacañang, Congress, and the Department of Budget and Management to comply fully with the ruling and ensure the immediate reinstatement of the funds.
Bayan Muna said the ruling should serve as a reminder that health insurance funds must be shielded from political discretion and that deeper reforms are necessary to prevent repeated violations of constitutional and statutory safeguards in the national budget.
Zarate’s co-petitioner, former Bayan Muna representative Attorney Neri Colmenares, proposes government reforms in the budgeting system, including tighter control on presidential certification of the budget, full transparency in the congressional deliberation of the budget, and stronger safeguards against the misuse of confidential and intelligence funds.
The Integrated Bar of the Philippines Human Rights Committee, who earlier honored Zarate and Colmenares for championing people’s rights lawyering, hailed the SC decision as a landmark victory.
Also lauded are the petitioners from 1Sambayan, including former Supreme Court Associate Justice Antonio Carpio, former Ombudsman Conchita Carpio Morales, Atty. Howard Calleja, former Finance Undersecretary Cielo Magno, and former COA Commissioner Heidi Mendoza.(davaotoday.com)
