(UPDATE) THE Supreme Court (SC) issued a temporary restraining order (TRO) on Tuesday to prevent further transfers of Philippine Health Insurance Corp. (PhilHealth) funds to the National Treasury.
The TRO was issued in response to three consolidated petitions challenging the government’s reallocation of excess reserve funds from government-owned and controlled corporations (GOCCs) to support unprogrammed appropriations in the national budget.
The TRO is effective immediately, stopping the potential transfer of up to P89.9 billion in unused PhilHealth reserves.
Supreme Court spokesman Camille Ting said the TRO addresses the immediate need to preserve these funds within PhilHealth. However, Ting clarified that the TRO does not require previously transferred amounts to be returned to PhilHealth.
The decision follows three high-profile petitions brought forward by the 1Sambayan Coalition, Sen. Aquilino Pimentel III and Bayan Muna Chairman Neri Colmenares. The petitioners argued that the reallocation of PhilHealth funds contravenes the intended use of GOCC reserves, potentially endangering health care services for Filipinos dependent on PhilHealth support.
Each petition contends that diverting PhilHealth’s excess funds could compromise the stability of the insurance system and jeopardize the benefits provided to millions of Filipinos.
The Supreme Court ordered the respondents, including the Department of Finance and other government officials, to submit their comments on the petitions and TRO application within a strict 10-day non-extendible period upon receiving notice. To expedite the proceedings, the Office of the Clerk of Court En Banc was instructed to personally serve the Supreme Court’s resolution to the respondents, who must, in turn, submit their responses in person.
Under Department of Finance Circular 003-2024, transfers of PhilHealth reserves have already begun.
On May 10, P20 billion was transferred.
On Aug. 21, an additional P10 billion was transferred.
In October, a third transfer of P30 billion was completed.
A fourth transfer of P89.9 billion, which the TRO covers, was scheduled for November.
Despite these substantial transfers, the TRO aims to protect the remaining funds, which petitioners argue are critical for the stability of PhilHealth and its beneficiaries.
Colmenares described the court’s decision as a victory for Filipinos relying on PhilHealth for essential health care.
“This TRO is a significant victory for the Filipino people, especially for PhilHealth beneficiaries who rely on these funds for their health care needs. The transfer of these funds would have jeopardized the benefits of countless Filipinos relying on PhilHealth for essential health services. This decision prevents a grave injustice from occurring,” he said.
Pimentel and 1Sambayan Coalition leaders also welcomed the TRO, underscoring the petition’s alignment with protecting public funds dedicated to health care services.
In a statement, PhilHealth said they respect the Supreme Court’s ruling.
“We fully respect and will abide by the decision of the Supreme Court on the issue. We remain focused on our mission to provide all Filipinos with adequate financial protection against health risks through better and responsive benefit packages and availment policies whenever and wherever they need them most,” the agency said.
The Department of Finance also said it would respect the Court decision.
In a Viber message to The Manila Times, labor leader and senatorial candidate Sonny Matula said the Supreme Court’s decision is a “timely move.”
“That is a breath of fresh air and a timely move from the Supreme Court to prevent the further erosion of PhilHealth’s funds,” he said.
Matula also said the government should start preparing for the oral arguments regarding the controversial fund transfer. He also argued that the remitted funds to the National Treasury be returned to the state-run health insurer.
On the X social media platform, health care advocate Dr. Tony Leachon welcomed the TRO, saying it prevents any further transfers.
“However, to fully restore the integrity of PhilHealth’s financial resources, a status quo ante order prayed for by the petitioners should also be issued. This would ensure that the funds previously transferred to the National Treasury are returned to PhilHealth, where they rightfully belong,” Leachon said.
“As we await further legal remedies, the next steps would be to secure this status quo order, allowing these vital funds to be used for the healthcare needs of Filipinos as intended under the Universal Health Care Law. The fight continues, but this development signals a strong movement toward accountability and genuine change in how public resources are managed,” he added.
Sen. Bong Go, chairman of the Senate Committee on Health and Demography, also issued a statement in support of the Court’s decision.
The Supreme Court is expected to deliberate further on the consolidated petitions, with the respondents’ comments providing essential insights.
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