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10 myths about the PhilHealth fund transfer
Business World Philippines
|December 09, 2025
The Supreme Court (SC) has ruled that the PhilHealth fund transfer of P60 billion back to the National Treasury in 2024 was unconstitutional and hence, void.
The SC then ordered the Treasury to return to PhilHealth the P60 billion. Here are the 10 myths that surrounded the fund transfer.
First, it was former Finance Secretary Ralph G. Recto who orchestrated the fund transfer. Wrong. It was Congress via Special Provision 1(d), Chapter XLIII of the General Appropriations Act (GAA) 2024. In the process, Congress tried to amend existing laws via rider provisions in the GAA.
Second, the Department of Finance (DoF) order was arbitrary. Wrong. DoF Circular No. 003-2024, which implemented the fund transfer, has a legal basis through GAA 2024, and it was backed by five agencies — the Office of the Solicitor General, Office of the Government Corporate Counsel, Governance Commission for Government-Owned and -Controlled Corporations, Commission on Audit and the PhilHealth Board itself. The target amount was P89.9 billion of idle PhilHealth funds; the P60 billion has been returned to the Treasury while the P29.9 billion was kept by PhilHealth.
Third, former Congressman Joey Salceda made the insertion to sweep some excess funds of GOCCs for unprogrammed appropriation projects. Wrong. This claim was made by former SC Justice Tony Carpio, and Mr. Salceda made a letter denying he did it because he was not a member of the House appropriations committee, the small committee or the bicameral conference committee during the 19th Congress.
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