Labor group urges Supreme Court to stop PhilHealth fund transfer

MANILA, Philippines — A major labor group has filed a motion to intervene before the Supreme Court (SC), seeking to stop the transfer of P89.9 billion from the Philippine Health Insurance Corp. (PhilHealth)’s reserve fund to the National Treasury.

The intervenors, led by the Nagkaisa Labor Coalition representing various labor organizations, assert that the fund transfer is an act of negative social justice that would adversely affect the nation’s health care system and its beneficiaries, particularly “those who have less in life.”

This developed after Sen. Aquilino Pimentel III filed a petition for certiorari and prohibition in light of the impending transfer of the P89.9-billion fund, which Nagkaisa argues is unconstitutional and detrimental to the expansion and improvement of PhilHealth’s basic health benefits and services.

Of the reserve fund, P30 billion has already been transferred, with additional funds set to follow.

“We have exhausted administrative remedies but to no avail. Our letters to PBBM (President Marcos) and to (Finance) Secretary Ralph Recto and PhilHealth remain unacted (on),” Nagkaisa chairman Sonny Matula said. “They remain unmovable in their course of action and resorting to the Supreme Court is now our legal imperative.”

Citing SC’s decision in Ople v. Torres (G.R. No. 127685), Nagkaisa emphasized the court’s duty to prioritize public interest and avoid procedural technicalities when issues of paramount importance are at stake.

“Courts have the duty to brush aside technicalities of procedure and resolve the matter with dispatch to avoid injustice and provide a just and prompt remedy,” the ruling stated.

“The workers and their families, who are the primary beneficiaries of PhilHealth, are at risk of losing the health benefits and services that these funds are intended to provide,” said Matula.

The petition also seeks to revoke the effects of Department of Finance (DOF) Circular 003-2024 and related provisions in the General Appropriations Act of 2024, which are seen as the basis for the fund transfer.

In July, the DOF defended the utilization of unused funds from government corporations, asserting that it was a more prudent approach than increasing taxes or incurring debt.

Health Secretary Ted Herbosa, who also chairs the PhilHealth board of directors, mentioned that Recto had committed to ensuring that the unused funds would support health-related initiatives.

The SC has scheduled oral arguments for Jan. 14, 2025, to address the transfer of the PhilHealth funds.

The court will first determine whether a temporary restraining order or a status quo ante order should be issued against the respondents, which include key government entities.

The SC is also set to tackle the constitutionality of the 2024 General Appropriations Act that authorizes the use of fund balances from government-owned and controlled corporations to finance projects outlined in unprogrammed appropriations or the pork barrel.

Before the oral arguments, a preliminary conference has been scheduled for Oct. 9, where counsels representing both the petitioners and respondents will discuss procedural matters. — Christine Boton