The Supreme Court has ordered the return of P60 billion in remitted funds to the Philippine Health Insurance Corporation (PhilHealth) through the 2026 General Appropriations Act (GAA).
“The SC, through the ponencia of Associate Justice Amy C. Lazaro-Javier, unanimously ordered the return of PhilHealth funds previously transferred to the National Treasury in the amount of P60 billion and permanently prohibited the transfer of the remaining P29.9 billion fund balance,” SC spokesperson lawyer Camille Sue Mae Ting said in a press briefer.
The High Court also declared void the special provision of the 2024 GAA as well as Department of Finance Circular No. 003-2024 for having been issued with “grave abuse of discretion amounting to lack or excess of jurisdiction.”
The issuances resulted in PhilHealth’s remittance of P60 billion to the national treasury in three tranches until the SC issued a temporary restraining order.
The High Court also ruled that the President did not commit grave abuse of discretion when he certified as urgent the 2024 GAA.
“Except in cases of grave abuse of discretion, the authority to decide whether a certification of urgency is valid rests solely with Congress. In this case, Congress approved the President’s certification to expedite the passage of the bill,” the High Court said.
Meanwhile, the High Tribunal denied a petition to determine the liability of the Finance Secretary for technical malversation and/or plunder, noting that such matters are “improper” for resolution in this case.
In his separate opinion, SC Senior Associate Justice Marvic M.V.F. Leonen said the presidential declaration of urgency should be considered invalid since there was no emergency or public calamity justified in dispensing with the constitutional requirement of three readings on separate days.
Among the petitioners in these consolidated petitions are former senator Aquilino Pimentel III, Bayan Muna Chairman Neri Colmenares, and 1Sambayan Coalition.
Malacañang, for its part, said it would abide by the Supreme Court ruling.
Presidential Communications Secretary Dave Gomez said the Office of the Solicitor General would study the decision and determine whether to seek reconsideration.
“We respect the decision of the Supreme Court,” Gomez said.
“The OSG will review the ruling and decide on the appropriate course of action, including filing a motion for reconsideration,” he added.
“We note that the Executive simply complied with the congressional mandate under the said law,” the Palace official added.
Executive Secretary Ralph Recto, who was the Finance chief when the transfers happened, said the government had committed from the start to comply with whatever the Court ordered.
“As we always said before the decision, the Executive will follow the Supreme Court’s order,” Recto said.
He also emphasized that the Department of Finance’s involvement was limited to revenue generation and debt management, and that several oversight bodies, including the OGCC, GCG, and COA, cleared the transfer before it was made.
The PhilHealth board also approved the move, Recto said.
Recto said the remittance never hindered PhilHealth’s operations or reduced member contributions.
Instead, he said, the correction paved the way for the agency’s biggest expansion of benefit packages under Universal Health Care, along with the implementation of Zero Balance Billing.
Both Gomez and Recto pointed out that President Ferdinand Marcos Jr. had already ordered the restoration of the P60 billion on September 20, 2025, citing PhilHealth’s stronger performance, higher absorptive capacity, and expanded benefits.
Congress later incorporated the restoration into the general appropriations bill, with the Senate upholding the directive in its committee report.
Recto said the administration remains committed to maximizing public funds to ensure no Filipino is denied healthcare.
“Our goal remains the same: to make every hard-earned peso of the Filipino taxpayer count, for our people, for their families, and for their health,” he said.
PhilHealth pledged to ensure the funds strengthen the delivery of public health services.
“We know this comes with the challenge of ensuring the amount is properly allocated to strengthening health services,” it said in a statement.
As this developed, Senator Risa Hontiveros pointed to the remaining P53 billion the government failed to release as PhilHealth’s 2025 subsidy, saying the unpaid obligation must be addressed as the nation prepares next year’s budget.
“The SC’s decision is clear: the transfer of PhilHealth’s reserve funds was unconstitutional. The returned P60 billion must remain with PhilHealth, and we will continue to demand the P53 billion the government still owes as the 2025 subsidy,” she said.
