Herbosa admits no idea where P89.9B PhilHealth funds returned to Treasury went

Health Secretary Ted Herbosa admitted Thursday that he does not know where the rest of the P89.9 billion in PhilHealth funds remitted to the national treasury in 2024 went, telling lawmakers that only a portion went to pay health workers’ allowances while the rest was handled by the Department of Finance.

During the House appropriations committee’s briefing on the proposed 2026 health budget, Rep. Chel Diokno pressed the DOH on why the money was not used entirely for health programs, despite earlier assurances.

Herbosa confirmed that about P30 billion was allocated to settle arrears in the health emergency allowance but admitted he was unsure where the balance of the funds went.

“So you're telling us…The rest you do not know exactly where that money went,” Diokno asked.

“I do not know exactly, but I think the DOF knows details of where it was used for funding,” Herbosa replied.

The Health chief explained that of the P89.9 billion, around P60 billion has been remitted to the Treasury and about P30 billion is still covered by a temporary restraining order issued by the Supreme Court.

In August 2024, the Philippine Medical Association (PMA), Senator Aquilino "Koko" Pimentel III, and others filed a petition asking the high court to issue a temporary restraining order and/or a writ of preliminary injunction to prevent the transfer of funds from PhilHealth to the national treasury.

“Either way, I will be happy whatever the Supreme Court decides. If they tell us to return it, we will comply. If they tell us it can be done, it will actually help health budgets improve implementation of [the] Universal Healthcare Law,” Herbosa said.

Diokno said that the funds could have eased Filipinos’ medical costs through expanded PhilHealth benefits. 

"I think that money could have gone, for example, to easing the burden and the cost, broadening the programs of PhilHealth for our people,” he said.

Herbosa assured lawmakers that if the funds are restored, the DOH will use them to expand PhilHealth benefit packages — including dialysis, cardiac care, and other high-cost treatments — and to push amendments to the UHC Law that would allow more flexibility in adjusting PhilHealth premiums.

Finance Secretary Ralph Recto earlier said the P89.9 billion that PhilHealth was ordered to return were government subsidies that remained unused. 

During the oral arguments on the PhilHealth funds in April, Recto told the Supreme Court that the P60 billion was redirected to the following: 

• P27.45 billion to pay the allowances of COVID-19 frontliners
• P10 billion to the Social Programs for Health to provide medical assistance to poor Filipinos 
• P3.37 billion for the establishment of three DOH facilities
• P4.1 billion to strengthen existing DOH facilities
• P1.6 billion to the Health Facilities Enhancement Program
• P13.00 billion to fund the government counterpart financing for foreign-assisted infrastructure and social determinants for health projects.

“Your Honors, the P60 billion that was returned didn’t vanish—it paid frontliners, built hospitals, and gave the poor access to medicine. Every centavo remitted was converted into service. That is fiscal justice,” Recto said. —AOL, GMA Integrated News