Senator Pia S. Cayetano said the Supreme Court’s ruling striking down the transfer of PhilHealth funds confirms what she has repeatedly stressed: that the law leaves no room for diversion and that PhilHealth funds must remain dedicated to the healthcare of Filipinos. “PhilHealth funds exist for the health of the Filipino people and cannot be used for any other purpose,” Cayetano said.
From the outset of the 2026 budget deliberations, Cayetano repeatedly cautioned that years of underfunding PhilHealth ran counter to the letter and intent of existing laws. In her interpellation on the General Principles of the 2026 national budget, she presented a four-year deficit of 129.96 billion pesos between sin tax revenues mandated for PhilHealth and the amounts actually released. She also highlighted 106.95 billion pesos in Philippine Charity Sweepstakes Office (PCSO) and Philippine Amusement and Gaming Corporation (PAGCOR) earmarked funds that had not been transmitted since 2019, noting that the removal of 60 billion pesos from PhilHealth’s subsidy only deepened the gap. She stressed that 296.91 billion – almost 300 billion – pesos in legally earmarked health funds had not reached PhilHealth despite explicit statutory requirements.
“It shall be allocated and used exclusively in the following manner. What else is there to say? As lawmakers, ano pang language ang kailangang gamitin para siguraduhin na ganito ang paggamit ng pondong ito?” she said, underscoring that the mandates of the Sin Tax laws and the Universal Health Care Act leave no room for administrative reinterpretation.
As Senior Vice-Chairperson of the Senate Committee on Finance, which handles the health budget, Cayetano had objected to the removal of PhilHealth’s government subsidy in 2025. Her objection ultimately prompted her to sign the bicameral report of the 2025 General Appropriations Act with reservations, making clear that the issue of PhilHealth’s excess funds should be addressed separately.
“This is about upholding the law and protecting the rights of millions of Filipinos who rely on PhilHealth coverage,” Cayetano emphasized.
For the Senator, the Supreme Court’s decision strengthens these protections and ensures that the legal framework supporting the Universal Health Care Act is upheld. “As we welcome this decision, we celebrate it together with the advocates who fought for it, but above all, with the Filipino people who stand to benefit the most,” she said. “Our responsibility now is to ensure that every peso ordered returned remains in the final General Appropriations Act and fulfills its purpose of improving the health and lives of our people.”#
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