SolGen to Review SC Order Restoring ₱60‑B PhilHealth Fund

The government has signaled it will carefully review the SC’s decision restoring ₱60 billion to PhilHealth, after the funds had been previously transferred to the national treasury under the 2024 budget law.

The executive — through the Office of the Solicitor General — said it respects the Court’s ruling. The OSG will determine the “proper course of action,” which could include filing a motion for reconsideration.

According to the Presidential Communications Office (PCO), the transfers were made in compliance with the 2024 General Appropriations Act (GAA) and had been approved by oversight bodies, the governance commission, and the PhilHealth board.

Ralph Recto, now Executive Secretary and formerly the Finance Secretary, defended the move by noting it did not impair PhilHealth’s operations — member contributions were unaffected, and services continued. He pointed out that the transfer allowed PhilHealth to vastly expand benefit packages and roll out the Zero Balance Billing policy.

At the same time, the SC’s decision found the transfer violated the requirements of the Universal Health Care Act (UHCA), specifically its reserves mandate (Section 11), declaring the provisions authorizing the transfer void — citing “grave abuse of discretion.”

Under the ruling, the ₱60 billion must be returned to PhilHealth via the 2026 GAA. The government’s response will determine if it abides by the order or challenges it further through legal mechanisms.

The decision carries major implications for public health funding and fiscal policy, especially as the country continues efforts to strengthen universal health coverage while balancing national budget commitments.