Recto ready to answer questions on transfer of PhilHealth funds

MANILA – The Department of Finance (DOF) is ready to answer questions on the legality of Department Circular 003-2024 directing the Philippine Health Insurance Corp. (PhilHealth) to remit P89.9 billion of unused government subsidies to the national treasury.

DOF Secretary Ralph Recto issued the statement Friday a petition was filed before the Supreme Court challenging the transfer of the funds.

"While we have yet to receive a copy of the petition and read its contents, we respect the rights of the petitioners to seek clarification from the Supreme Court regarding the legality of the PhilHealth unused subsidy (fund balance)," Recto said.

"The Department of Finance is ready to answer any questions on the legality of DOF Department Circular 003-2024 which is an implementation of a direct mandatory Congressional order under Section XLIII (1)(d) Republic Act No. 11975, or the General Appropriations Act 2024," he added.

Recto added that legal due diligence was exercised through coordination with the Governance Commission of Government-Owned and Controlled Corporations, Office of the Government Corporate Counsel and Commission on Audit, all of which issued a favorable opinion on its legality.

"As I stated before the Senate, I believe that public health deserves the full support of the government – a position which I have maintained in my three decades in Congress. I want to make it clear that I never opposed any recommendations to reduce PhilHealth member contributions," Recto said.

Recto noted that measures to source financing for government programs and projects are undertaken consistent with the belief that its capacity to address the primary needs of the people, including health, is not compromised.

"This is borne out by the fact that the President has already announced that the PhilHealth will enhance its benefits, with improved medical aid packages for a broad range of illnesses, such as pneumonia, hypertension and cancer," Recto said.

Senate Minority Leader Aquilino Pimentel III and various groups like the Philippine Medical Association, representing PhilHealth contributors, said in their petition that the fund transfer order was "a grave disservice to the Filipino people who depend on PhilHealth for financial risk protection from illness and who are still heavily burdened by out-of-pocket health expenditure." (PNA)