The Supreme Court has started its oral arguments on the transfer of PhilHealth funds to the National Treasury to be used for other government projects.

In Saleema Refran’s Tuesday report on “24 Oras,” the petitioners presented why the transfer of unused PhilHealth funds is unconstitutional.

The petitioners particularly expressed opposition to the circular of the Department of Finance and the provision of the General Appropriations Act, which paved the way for the return of nearly P90 billion PhilHealth funds to the National Treasury.

Last year, PhilHealth remitted P60 billion to the National Treasury while the court halted the transfer of the remaining P29.9 billion after a petition was filed.

“The questioned provision and DOF circular are inconsistent, incompatible, and irreconcilable with the Universal Health Care Act and the Sin Tax Law. UHC's objective is clear, to provide social health insurance and risk protection to all Filipinos,” said lawyer Paula Mae Tanquieng, counsel of the petitioners.

“In computing the alleged fund balance, DOF defied the clear language of the sin tax laws, stating that these funds be used exclusively for universal health care. These funds were sourced from sin taxes and cannot be used for other purposes, irrespective of how noble the purpose is,” she added.

Finance Secretary Ralph Recto, Health Secretary Teodoro Herbosa, Social Welfare Secretary Rex Gatchalian, and former PhilHealth president Emmanuel Ledesma Jr. attended the hearing.

The respondents were represented by the Office of the Solicitor General and the Office of the Government Corporate Counsel.

The respondents said the transfer of PhilHealth funds is legal and under the constitution.

“It was the executive and legislative department’s way of creating and implementing a fiscal policy to boost economic growth without bloating the government’s indebtedness or burdening the people with new tax measures. It is a common sense approach that does not violate any law much less the constitution, in any way,” Solicitior General Menardo Guevarra said.

“I assure the honorable court and the people that contrary to what has been portrayed by some critics, there was no dark nor sinister plan behind the transfer,” he added.

The solicitor general requested to remove President Ferdinand Marcos Jr. as respondent since a president has immunity from suit while in position.

The three petitions on PhilHealth funds filed in the Supreme Court were consolidated and will be heard simultaneously.

Justice Amy Lazaro Javier questioned if PhilHealth has a reserve fund.

Although he confirmed that investment is the last in the order of priorities, Deputy Treasurer Eduardo Anthony Marino said PhilHealth “generates more revenues than expenditures.”

“I will show you the report of COA (Commission on Audit), which shows that PhilHealth is bankrupt actually.  I don’t know if you're aware of that. You ought to be aware. and COA has repeatedly highlighted that in its letters to PhilHealth, and then COA said that for many years, at least 3 years, 2021, 2022, 2023, the reserve fund of PhilHealth is much much less than its actuarial fund, actuarial estimate,” Javier said.

Before the oral arguments, several groups held a protest outside the Supreme Court. —Mariel Celine Serquiña/LDF, GMA Integrated News