The Supreme Court (SC) has issued a temporary restraining order (TRO) halting the transfer of P89.9 billion in unused PhilHealth funds to the Bureau of the Treasury, a move seen as a victory for healthcare advocates and a potential setback for the government's fiscal plans.
The TRO, effective immediately, prevents further transfer of funds from PhilHealth to the national treasury, where they were intended to augment unprogrammed appropriations in the 2024 budget.
The SC consolidated petitions filed by 1SAMBAYAN Coalition, Senate Minority Leader Aquilino "Koko" Pimentel III, and Bayan Muna, all challenging the return of excess funds from government-owned and controlled corporations to the national treasury.
The petitioners argued that the insertion of the provision on unprogrammed appropriations in the 2024 General Appropriations Act is beyond the power of Congress and undermines the Universal Health Care Act. They also expressed concern that the funds could be used for purposes beyond the intended healthcare benefits.
The Department of Finance (DOF) justified the transfer, arguing that unused funds from government corporations could be used for health, social services, and infrastructure projects. However, the SC's decision suggests a potential conflict between the government's fiscal priorities and the need to ensure adequate funding for healthcare.