After two years of disputes, ₱60B is finally back with PhilHealth

National Treasury returns diverted reserves following Supreme Court victory.

After two years of legal battles, political debate, and public scrutiny, the Philippine Health Insurance Corporation (PhilHealth) has finally received back ₱60 billion previously flagged as excess funds.

The country’s public health insurer confirmed receipt of the amount on May 6, after the National Treasury returned the funds upon the orders if the administration and an earlier Supreme Court decision.

In 2024, the Department of Finance (DOF) ordered PhilHealth to return ₱89.9 billion identified as unspent funds from its previous annual budget. The amount was set to be directed to the National Treasury for reallocation in the next year’s budget.

The path to restoration

Civil society groups challenged the move as unconstitutional, elevating the case to the Supreme Court that same year. Under the Universal Health Care Act, PhilHealth is required to maintain reserve funds worth two years of projected expenses.

At that point, ₱60 billion of the ₱89.9 billion total had already been transferred back to the Treasury before the Court temporarily suspended the fund transfer.

The Supreme Court ruled in December 2025 that the DOF order violated laws covering universal healthcare and the national budget. In September 2025, the Office of the President had already ordered the funds to be returned to PhilHealth.

 

 

The tug-of-war is over. PhilHealth confirms the return of ₱60 billion in diverted reserves following a landmark Supreme Court victory. 

 

 

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