MANILA, Philippines — The Philippine Health Insurance Corp. (PhilHealth) confirmed on May 6, 2026, that it has fully received the ₱60 billion in “excess funds” that were previously transferred to the national treasury. The restoration of these funds marks the end of a high-profile legal and political battle that reached the Supreme Court.
The return of the money, finalized in early May 2026, follows a Supreme Court ruling in late 2025 that declared the original transfer unconstitutional, citing the “special nature” of social health insurance funds.
The movement of these funds was a central point of contention for nearly two years:
- February 2024: The Department of Finance (DOF) ordered the transfer of ₱89.9 billion in “idle” PhilHealth funds to the National Treasury to fund unprogrammed government projects.
- Late 2024: PhilHealth completed the transfer of the first ₱60 billion in three tranches.
- December 2025: The Supreme Court voided the transfer, ruling that PhilHealth’s reserve funds cannot be diverted to the National Government. The Court permanently prohibited the transfer of the remaining ₱29.9 billion and ordered the ₱60 billion to be returned.
- April 2026: The Department of Budget and Management (DBM) issued the release order following a directive from President Ferdinand Marcos Jr. to restore the funds via the 2026 National Budget.
PhilHealth has pledged to use the returned funds to aggressively expand its healthcare benefit packages. With this ₱60 billion addition, the corporation’s 2026 operating budget now stands at approximately ₱453 billion.
- Maternity Benefit Surge: Coverage for normal deliveries has been increased from ₱9,750 to ₱29,000, while C-section coverage now reaches up to ₱62,000.
- Outpatient Medication: Expansion of the Guaranteed and Accessible Medications for Outpatient Treatment (GAMOT) package, allowing members to avail of up to 75 types of free medicines (up to ₱20,000/year) in provinces outside Metro Manila.
- Specialty Treatments: Increased subsidies for leptospirosis, animal bites, and HIV treatments, alongside an ongoing review to raise rates for the “most common” hospital admissions by 30% to 50%.
- Zero Balance Billing: Sustaining the program that ensures indigent patients and senior citizens pay “zero” out-of-pocket costs in government hospitals.
The Nagkaisa Labor Coalition and other petitioners who challenged the fund transfer hailed the return as a victory for the Universal Health Care (UHC) Act. PhilHealth Spokesperson Dr. Israel Francis Pargas emphasized that the restored funds will act as a buffer to ensure that the agency can keep up with the rising costs of private and public hospital services without depleting its long-term reserves.
“This is a clear expression of confidence that PhilHealth can fulfill its mandate,” the agency stated. “Every peso will be allocated toward enhancing benefits and delivering services that are fast, fair, and truly reliable.”