A Philippine senator on Tuesday grilled finance and health insurance officials over plans to transfer excess funds from the state health insurer to the national treasury, urging them instead to improve healthcare services for the poor.

Senator Christopher “Bong” Go, chair of the Senate Committee on Health, questioned the moral and legal basis for transferring funds intended for healthcare to other purposes during a public hearing.

“Health funds should be used to protect people’s health,” Go said, challenging Finance Secretary Ralph Recto to spare health funds from budget reallocations.

Recto defended the move, citing legal authorization from the 2024 General Appropriations Act. He assured that the Philippine Health Insurance Corporation (PhilHealth) would remain financially stable with a 500 billion peso ($9 billion) benefit fund after the transfer.

PhilHealth President Emmanuel Ledesma confirmed substantial reserves but faced criticism from Go for not using these funds to enhance benefits for patients.

Health reform advocates and medical associations expressed concern over the ethical implications of the fund transfer, emphasizing the struggles faced by patients due to insufficient benefit packages.

Go urged PhilHealth to reduce contribution rates and utilize funds effectively, highlighting the plight of patients unable to afford essential services.

The hearing concluded with commitments from PhilHealth and the Department of Finance to address concerns and consider reducing health insurance contributions.