New PhilHealth chief: 'We will abide by SC ruling on fund transfer'

Newly appointed Philippine Health Insurance Corporation (PhilHealth) President and Chief Executive Officer Dr. Edwin Mercado said Wednesday that he respects the Supreme Court's process as regards the transfer of PhilHealth funds to the National Treasury.

''Sa kasalukuyan po mayroon ng proseso na nangyayari sa Supreme Court, we respect the process that the Supreme Court is undergoing and we will abide by the ruling that the Supreme Court will have,'' Mercado said during a press briefing.

The SC already started its oral arguments on the transfer of PhilHealth funds to the National Treasury, which will be used for other government projects. The petitioners explained why the transfer of unused PhilHealth funds is unconstitutional.

“The questioned provision and DOF (Department of Finance) circular are inconsistent, incompatible, and irreconcilable with the Universal Health Care Act and the Sin Tax Law. UHC's objective is clear, to provide social health insurance and risk protection to all Filipinos,” said lawyer Paula Mae Tanquieng, counsel of the petitioners.

Tanquieng said that in computing the alleged fund balance, the DOF has defied the clear language of the sin tax laws, stating that these funds be used exclusively for universal health care.

''These funds were sourced from sin taxes and cannot be used for other purposes, irrespective of how noble the purpose is,'' she said.

In 2024, the state insurer remitted P60 billion to the National Treasury while the court stopped the transfer of the remaining P29.9 billion after a petition was filed.

--VAL, GMA Integrated News