Finance Secretary Ralph G. Recto answer questions during the during the economic briefing for the World Economic Forum (WEF) Country Roundtable in Manila at the Kalayaan Hall in Malacanang in Manila on March 19, 2024. Jonathan Cellona, PPA/Pool

MANILA -- Finance Secretary Ralph Recto defended the transfer of Philhealth’s nearly P90 billion excess funds to the government, asserting that the money is not from the members’ contribution, but rather from the national government’s subsidy to Philhealth. 

At the Kapihan sa Manila Bay forum, Recto said the said money is just being kept and not used by Philhealth, so it is better spent on other projects. 

“Nag-contribute ang gobyerno in the last two years, kulang-kulang P170 billion. Hindi nagagastos ang nobenta. Natutulog ang pera. Hindi naman kayang gastusin ng PhilHealth. Sabi naman gamitin muna natin para sa ibang programa,” he said.

 Tapyas-kontribusyon sa PhilHealth pinag-aaralan

(The government contributed in the last two years about P170 billion to Philhealth. P90 billion of which was not used. The money is just being stored. Philhealth is not using the money. We said why not use it to fund other programs.)

Recto added that Philhealth is not using the excess fund, because it already has money allocated for its services and operations. Even if Philhealth expands its benefit packages, it still has enough money. 

“Kinuha ko yung nobenta, may matitirang P500 billion pa rin ang PhilHealth. Ang magagastos nila sa taon na ito, tantiya namin base sa plano nila, kasama na diyan ang utos ng pangulo na dagdagan ang additional benefits packages, tantiya namin diyan hanggang P175 billion lang ang magagastos,” Recto asserted. 

(Even if we get 90 [billion], Philhealth will still have P500 billion left. It will be spending this year based on its plan and even if we include the president’s order to expand benefits packages, it will spend P175 billion.) 

The finance chief also clarified that the money will not just go anywhere. It will go to unprogrammed funds, but these are funds for infrastructure projects and other social programs not usually included in the budget. 

PhilHealth to recommend decrease in contribution

“Hindi pork barrel ang pondo sa unprogrammed fund. Karamihan diyan ay foreign assisted projects, international commitments natin… Halimbawa Cavite-Bataan Bridge, gagawin rin yan, unprogrammed fund yan. Yung Panay-Guimaras na tulay, yung Davao Coastal Road or something sa Davao. At marami pang iba,” he said. 

(Unprogrammed funds are not pork barrel. Most go to foreign assisted projects, international commitments like the Cavite-Bataan Bridge, that’s from an unprogrammed fund. Also, Panay-Guimaras bridge, Davao Coastal Road and more.) 

Recto added that they are not only getting excess funds from Philhealth, but a bigger amount of P110 billion is coming from the Philippine Deposit Insurance Corporation. 

Recto insisted the transfer of funds is legal and in fact the Finance department, he said, has been mandated to implement such a move by law. A petition seeking to block the diversion of the excess funds of Philhealth has now reached the Supreme Court.