Solicitor General Defends Legality of PhilHealth Fund Transfer to National Treasury

In a robust defense before the Supreme Court, Solicitor General Menardo Guevarra justified the transfer of funds from the Philippine Health Insurance Corp. (PhilHealth) to the national treasury, asserting that the move was legally sound and necessary for funding critical government initiatives. During the oral arguments held in Manila on February 4, 2025, Guevarra emphasized that the transfer was a temporary solution to ensure the availability of funds for essential programs without increasing national debt. He refuted claims of any malicious intent behind the transfer of the PHP60 billion from PhilHealth, stating it was a strategic fiscal decision. Guevarra also requested the court to remove President Ferdinand R. Marcos Jr. from the list of respondents, citing presidential immunity. The Supreme Court had previously issued a temporary restraining order in October to halt further transfers, following petitions from groups led by Senate Minority Leader Aquilino Koko Pimentel III and Bayan Muna party-list chair Neri Colmenares. Despite the order, PHP60 billion had already been transferred, leaving PHP29.9 billion with PhilHealth. Guevarra explained that the decision was made to avoid further borrowing, highlighting the national debt’s burden of PHP15.18 trillion as of February 2024, equating to PHP139,000 per Filipino. He argued that the transfer was a sensible fiscal policy to stimulate economic growth without increasing debt or taxes. Guevarra detailed that over three years, government subsidies to PhilHealth totaled PHP239.11 billion, while benefit claims reached only PHP149.23 billion, resulting in an unutilized fund balance of PHP89.9 billion by the end of 2023. The oral arguments are set to continue on February 25.