Photo credit: Congress PH

With the bicameral conference committee approving the proposed 2025 budget on December 12, Congress still has a narrow window to act decisively before the budget bill is forwarded for the President's approval and signature.

One critical move is imperative: repeal the rider provision in the 2024 General Appropriations Act ( GAA) that allows the national government to access "excess funds" of Government-Owned and Controlled Corporations (GOCCs) like PhilHealth, GSIS, SSS, and BCDA.

This quietly inserted provision in the 2024 GAA jeopardizes the financial stability of these institutions and undermines their ability to deliver critical services.

For PhilHealth, the implications are dire. Funds contributed by workers, employers, and taxpayers are intended exclusively for healthcare services.

Reclassifying savings as "excess" and making them available for government use directly contravenes this mandate.

According to news reports, PhilHealth received zero subsidy for 2025 in the bicam-endorsed budget proposal.

This makes it even more essential for the agency to retain its savings as an alternative funding source.

Instead of requesting additional funds from Congress, PhilHealth can utilize these savings to address its operational needs, settle delayed hospital reimbursements, and expand member benefits.

This common-sense approach avoids unnecessary strain on both PhilHealth and the national budget.

It is illogical to withdraw PhilHealth’s funds as "savings" only to later allocate new funding for the same needs.

This cycle of financial mismanagement erodes public trust and demonstrates poor planning.

Furthermore, diverting PhilHealth's funds for non-health-related purposes violates the principle of using these resources solely to benefit its members—especially indigent families, seniors, and persons with disabilities.

The same risks apply to other GOCCs like GSIS, SSS, and BCDA, which are tasked with pensions, social security, and economic development.

Allowing access to their funds sets a dangerous precedent that threatens their ability to fulfill their mandates.

Moreover, the legal implications of this rider provision are significant. Previous Supreme Court rulings have upheld the financial independence of GOCCs, making this provision a potential target for constitutional challenges.

While these legal battles could take time, Congress has the power to prevent them altogether by repealing the provision.

Repealing the rider provision now would safeguard these funds, ensure they serve their intended purposes, and avoid legal and constitutional crises.

In the case of PhilHealth, its challenges reflect deeper issues of leadership. Under President Emmanuel Ledesma, the agency has struggled to manage resources effectively and provide clear strategic direction.

As calls to increase PhilHealth’s 2025 budget grow louder, it becomes clear that the agency needs a leader with vision, competence, and genuine empathy for the poor.

It is high time for President Marcos to replace him as a timely Christmas gift to the Filipino people.

PhilHealth needs a capable, visionary, and humble leader with genuine empathy for the poor. Such a leader can address inefficiencies, expand access to healthcare, and rebuild trust in the agency’s ability to serve its members.

The legal implications of this rider provision also cannot be ignored. Opponents of the provision argue that it contradicts previous Supreme Court (SC) decisions, which upheld the independence of GOCCs, particularly in how their funds are managed.

Legal challenges have been filed with the SC to contest the provision on constitutional grounds, emphasizing that it infringes on the rights of these agencies to manage their resources without interference.

Repealing this rider provision saves the people from having to go to the Supreme Court, saves the justices valuable time to focus on more important concerns, and prevents a potential constitutional crisis.

While these legal challenges may take time to unfold, they underscore the necessity of immediate action from Congress to prevent further damage to PhilHealth and other GOCCs.

We have seen legislators arguing before the media that they do not agree with this provision.

So, as not to be accused of merely posturing or doing it in aid of re-election, what better way to demonstrate their commitment than by repealing this provision themselves—the very legislators who passed this law in the first place?

Without Congress passing this law, there would be nothing to legally challenge.

At the same time, PhilHealth and other GOCC funds will remain intact, serving their intended purpose: benefitting the members and not funding pet projects of legislators, which are often prone to graft and corruption.

The bicameral conference for the 2025 budget is a critical moment to correct this dangerous precedent.

Repealing the rider provision will protect the financial independence of GOCCs, ensuring they can fulfill their mandates without interference.

Congress and the administration must act decisively to remove this provision and demonstrate their commitment to prioritizing the welfare of the Filipino people.

Will Congress rise to the occasion, or will this dangerous precedent continue to threaten our nation’s essential institutions?

Abangan!

Ed Javier

Ed Javier is a veteran communicator with over 34 years of professional experience both in the private and public sectors. He is also an entrepreneur, political analyst, newspaper columnist, broadcast and on-line journalist.