The Philippine Health Insurance Corporation, also known as PhilHealth, will not receive any government funding in 2025. Instead, it will rely on its own savings, which amount to a massive ₱600 billion.
This decision was announced by Senator Grace Poe, who leads the Senate Finance Committee. After a meeting to finalize the 2025 national budget, she explained why PhilHealth was excluded.
Why Is PhilHealth Not Getting Funds?
PhilHealth’s enormous reserve funds are the main reason for this decision. According to Poe, the money is just sitting in an account and earning interest that doesn’t even keep up with inflation. This means the value of the money is shrinking over time, and the government thinks it’s time for PhilHealth to use these reserves instead of asking for more funds.
“Right now, PhilHealth was not given a budget for next year because they need to use their reserve funds first,” Poe said.
Where Will the PhilHealth Funds Go?
The money originally planned for PhilHealth was redirected to other important sectors that lacked funding. Poe explained that the extra money from PhilHealth’s unused reserves will now help departments and programs that need it the most.
“We reallocated PhilHealth’s funds to sectors that have no budget for next year,” Poe shared.
PhilHealth Still Has Money for Operations
Although PhilHealth won’t get extra subsidies, it’s not completely out of money. The national budget still includes funds to cover the organization’s operating costs. This ensures that PhilHealth can continue to provide healthcare services to Filipinos.
“They still have their budget for their operating costs,” Poe clarified.
A History of Budget Cuts
Under the 2024 National Expenditure Program (NEP), PhilHealth was initially set to receive ₱74.4 billion in subsidies. The Senate later reduced this to ₱64.4 billion. However, after discussions between the Senate and House of Representatives, lawmakers decided to remove PhilHealth’s subsidies entirely.
This isn’t the first time PhilHealth has faced financial scrutiny. Previously, the agency was criticized for transferring ₱89.9 billion in excess funds to the national treasury.
What’s Next for the 2025 Budget?
The 2025 national budget amounts to ₱6.352 trillion. The final version of the General Appropriations Bill (GAB) was approved by Congress and is expected to be signed by President Ferdinand “Bongbong” Marcos Jr. on December 20, 2024.
This budget will focus on prioritizing essential sectors and making sure funds are used effectively, even as some agencies like PhilHealth use their savings instead of getting new subsidies.
