The Supreme Court decides: Overall, PHIC’s disbursements of allowances lacked formal authorization and did not comply with relevant regulations, undermining their legality and prompting the disallowance.
The case revolves around the legality of benefits granted by the Philippine Health Insurance Corporation (PHIC) under Notices of Disallowance (NDs). The central issue is whether PHIC had the authority to grant these benefits, which include productivity bonuses and allowances, beyond its standard compensation.