The national government has given the Philippine Health Insurance Corporation (PhilHealth) more funds through subsidies under the General Appropriations Act (GAA) than what it would have received from sin tax revenues, according to government lawyers defending the agency before the Supreme Court.
“PhilHealth has not been actually disadvantaged … PhilHealth has actually been receiving subsidy from the GAA more than what it would have received under its allocation attributed from sin taxes, Your Honor,” Government Corporate Counsel Solomon M. Hermosura said during the third round of oral arguments recently, in the consolidated petitions questioning the constitutionality of PhilHealth’s excess fund transfers.
Official data confirms that from 2014 to 2024, PhilHealth received P635.36 billion in subsidies from the GAA, surpassing the P534.33 billion it got from sin tax allocations.
Records also show that PhilHealth never sought additional fund releases during that period.
Hermosura stressed that this reflects the government’s clear commitment to universal health care.
Citing Section 37 of Republic Act No. 11223 or the Universal Health Care (UHC) Act of 2019, Hermosura said the law explicitly states that the required funding “shall be included in the GAA and shall be appropriated under the DOH and national government subsidy to PhilHealth”—a provision that reinforces Congress’ constitutional power of the purse.
The law also allows the DOH and PhilHealth to request supplemental funds from Congress to meet UHC milestones.
Solicitor General Menardo I. Guevarra backed this interpretation, telling the High Court that the law mandates all sources of UHC funding—including sin taxes—must go to the general fund before being appropriated by Congress.
“Your Honor, it seems to be that all of the sources of funding, including those arising from the sin taxes, will have to go to the general fund and to be eventually appropriated by Congress under the DOH and national government subsidies to PhilHealth … That is my understanding, Your Honor,” Guevarra said.
“[I]t is not the same as this law creating or providing for the creation of a special trust fund like the Coco Levy Trust Fund, which is set apart from the general fund of the national treasury,” he added.