The former PhilHealth director welcomed the Supreme Court’s decision ordering the return of ₱60 billion in reserve funds to the Philippine Health Insurance Corp. (PhilHealth), calling it a “landmark ruling” that protects the integrity of the country’s universal healthcare system.

In an interview on DZRH’s Special on Saturday, Dr. Tony Leachon said the ruling ends the long-standing practice of using PhilHealth’s reserve funds for purposes outside the agency’s mandate.

“It’s a landmark decision. Matagal-tagal na rin nating inaabangan ‘yan,” Leachon said. “Hindi pwedeng gamitin ang pera ng PhilHealth sa ibang bagay. Ang pera po ng PhilHealth ay para sa PhilHealth kasi special funds ‘yan or naka-earmark.”

Impact on Universal Healthcare

Leachon stressed that PhilHealth is one of the primary pillars of the country’s Universal Healthcare Law, alongside the health workforce, infrastructure, and funding. He said the restored funds should help increase benefit packages, reduce premium rates, and lower out-of-pocket expenses for patients.

He also thanked Supreme Court Associate Justice Amy Lazaro-Javier, the ponente of the ruling, noting that the decision made the release of ₱29.9 billion “immediately executory” and halted future efforts to realign PhilHealth funds through provisions in the General Appropriations Act.

According to Leachon, PhilHealth’s pool of resources comes from two main sources: contributions from direct payers and sin tax collections allocated for indirect contributors such as indigent families, persons with disabilities, and senior citizens. He said the yearly requirement for indigent coverage alone reaches ₱74 billion.

Budget Concerns and “Lost Opportunity”

However, Leachon raised concerns over the timing of the return of the ₱60 billion, noting that the government subsidy for PhilHealth in 2025 was set at zero.

“So ang kalupitan niyan, ay nag-roll over sa 2025. Hindi nagbigay ng budget. Zero ang subsidy natin for this year,” he said. “Basically, ang utang ng government sa atin ay ₱60 billion plus interest.”

Leachon argued that the government should return the funds immediately rather than pushing the reimbursement to the 2026 national budget, saying the delay deprives Filipinos of healthcare benefits that could have been funded in the meantime.

“Bakit ang taxpayers ang magbabayad sa 2026? Yung lost opportunity ng mga tao for that,” he said.

He also questioned how PhilHealth would cover its obligations this year, including the ₱74 billion subsidy needed, given the absence of national government support.

Leachon said discussions in the ongoing budget hearings must ensure the protection of PhilHealth’s funds, noting the risks posed during bicameral deliberations and presidential approval.

Calls for Vigilance

The former PhilHealth director—who served from 2016 to 2019—emphasized the need for the public and lawmakers to closely monitor how the agency’s funds are handled moving forward.

“We cannot declare victory too soon,” Leachon said. “Dapat very vigilant tayo… baka mawala na naman itong perang ito.”

Leachon said the restored funds should help strengthen PhilHealth’s programs, including preventive initiatives such as the YAKAP program, as well as increasing benefit payouts, reducing premium contributions, and lowering the current 46% out-of-pocket spending burden of Filipinos to 30%.

Despite his concerns, Leachon called the Supreme Court ruling a major victory.

“I’ll take this as a big win, as a landmark win, as a victory for the Filipino people,” he said, crediting petitioners, civil society groups, and the media.

“Ang universal healthcare at syntax ay dapat nating pangalagaan… para kung magkasakit ang mga tao, hindi naman silang maghihirap at maubos ang kanilang mga savings," Leachon said.