President Ferdinand Marcos Jr. assured Filipinos that the Philippine Health Insurance Corporation (PhilHealth) has enough funds to continue providing healthcare services despite receiving no government subsidy in the proposed 2025 national budget.
Why No Subsidy for PhilHealth?
Speaking to reporters, Marcos explained that PhilHealth has ₱500 billion in reserve funds—more than enough to cover its annual operating costs of around ₱100 billion. He emphasized that the decision not to allocate a subsidy was practical, as additional government funds would simply sit unused in PhilHealth’s bank accounts.
“The PhilHealth has sufficient budget to do everything they need to do,” Marcos said.
He pointed out that over the past two years, PhilHealth’s services have expanded significantly. More treatments and conditions are now covered, benefiting a larger number of people. These improvements, he noted, were achieved with the budgets for 2023 and 2024.
Encouraging PhilHealth to Modernize
Marcos urged PhilHealth to go digital to improve its processing capabilities. Digitalizing their systems would make it easier for members to access benefits faster and with less hassle.
“Start digitalizing your processes,” Marcos said. “That’s where the effort should be, so we can process everyone smoothly and ensure people get their benefits quickly.”
Senate’s Stand on the Budget
Senate Finance Committee Chairperson Grace Poe also explained the decision not to give PhilHealth additional funds. She revealed that PhilHealth has ₱600 billion in reserve funds, which need to be used first.
“PhilHealth was not given a subsidy for 2025 because they still have reserve funds they can use,” Poe said. She also noted that the reserve funds are not earning enough interest, which is a loss for the government.
Assurances from PhilHealth and the DOH
Both PhilHealth and the Department of Health (DOH) assured the public that healthcare services would remain uninterrupted.
- PhilHealth: Said its reserve funds are sufficient to continue supporting beneficiaries but expressed hope that President Marcos might reconsider the zero-subsidy decision.
- DOH: Confirmed that services will remain unaffected, as PhilHealth still has a ₱150 billion surplus from the 2024 budget that can cover subsidies for indirect members.
Oversight on PhilHealth’s Role
Senator JV Ejercito called for an oversight committee hearing to evaluate PhilHealth’s role in implementing the Universal Health Care Act. He emphasized the need to ensure that PhilHealth effectively uses its funds for the benefit of all Filipinos.
What’s Next?
The President is expected to sign the 2025 national budget on December 20. All eyes are now on PhilHealth to see how it manages its reserve funds and continues to serve millions of Filipinos.
Marcos remains confident that PhilHealth is fully capable of delivering uninterrupted services, ensuring every Filipino receives the care they need.
