The Department of Health (DOH) confirmed on Wednesday that a portion of excess funds from state insurer PhilHealth was used to finance the recently released Health Emergency Allowance (HEA) for healthcare workers.
However, DOH officials clarified that the transferred funds were not contributions from PhilHealth's paying members.
"We are adhering to Section 11 of Republic Act 1123 or the Universal Health Care Act," said Health Spokesperson Asec. Albert Domingo. "This law states that if PhilHealth has excess funds, benefits should be increased or premiums should be reduced. This has been happening since 2024."
Domingo explained that the Department of Finance (DOF) was following a provision in the national budget law that mandates unused funds to be returned to the people in other ways, rather than being kept in reserve.
"The DOF and the Department of Budget and Management (DBM) used these funds for the Health Emergency Allowance," he added. "This is why there were funds available for the HEA. The money came from PhilHealth's excess funds."
Domingo revealed that around P20 billion of PhilHealth's excess funds was used to fund the HEA.
The DOH acknowledged concerns from some health advocates regarding the transfer.
"We agree with civil society organizations who say health funds should be used for health purposes," Domingo said. "Our understanding is that the funds from PhilHealth were used for the Health Emergency Allowance for our healthcare workers. In a sense, the money just moved from the bank to the people."
Earlier, health advocates called for an investigation into the issue, while some senators expressed concerns about potential security problems.
PhilHealth officials clarified that the transferred funds did not include contributions from paying members, but rather came from the unused portion of a national government subsidy. The state insurer also emphasized its efforts to enhance benefit packages for various illnesses.