Palace: OSG to review SC ruling ordering return of ₱60B PhilHealth funds

Logo of Malacañang Palace, the official residence of the President of the Philippines, displayed on a textured white background.

Malacañang said the Office of the Solicitor General (OSG) will study the Supreme Court (SC) ruling that ordered the return of ₱60 billion in Philippine Health Insurance Corp. (PhilHealth) funds from the National Treasury.

“We respect the decision of the Supreme Court. The Office of the Solicitor General will review the ruling and decide on the appropriate course of action to take, including the filing of a motion for reconsideration,” the Presidential Communications Office (PCO) said in a statement.

The SC earlier voided Special Provision 1(d), Chapter XLIII of the 2024 General Appropriations Act (GAA), along with Department of Finance Circular 003-2024, which mandated the remittance of “fund balance” or excess reserve funds of government-owned or controlled corporations to the Treasury.

PhilHealth had already remitted ₱60 billion under the provision, with the DOF circular ordering the transfer of up to ₱89.9 billion. The high court ruled that the term “fund balance” was ambiguous and not defined in the GAA.

The PCO also recalled President Ferdinand Marcos Jr.’s directive last September for the national government to restore PhilHealth’s funds, citing the state insurer’s improved performance and expanded benefit packages.

Marcos said the refund would be sourced from savings generated in other agencies, including the Department of Public Works and Highways.

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