No additional subsidy for PhilHealth in 2025

MANILA, Philippines — No additional subsidies under the proposed P6.352-trillion national budget for 2025 will be given to the Philippine Health Insurance Corp. (PhilHealth), Senate President Francis Escudero said yesterday.

PhilHealth could receive a subsidy to provide health insurance coverage and ensure affordable and accessible health care services for Filipinos, but the Senate will not increase it, Escudero said.

“Subsidy for any PhilHealth program will not increase with the amount of money they have. We should maximize the fiscal space we have for the coming year,” Escudero told radio dzBB.

“Governance is about allocating scarce resources. If you can allocate scarce resources properly, then we govern properly as well,” he noted.

Senators will deliberate on PhilHealth, Escudero said, noting that the state health insurer has too much excess funds.

The Supreme Court earlier issued a temporary restraining order on PhilHealth’s transfer of unused funds to the national treasury.

The TRO stopped the scheduled transfer in November of P29.9 billion, representing the fourth and final tranche of the PhilHealth funds amounting to P89.9 billion, which the Department of Finance ordered impounded to fund unprogrammed appropriations in the national budget.

PhilHealth transferred P20 billion in May, P10 billion in August and P30 billion in October.

“If we don’t spend and use it (government subsidy), we lose about four percent based on the inflation per year. That’s equivalent to P20 billion a year,” Escudero said.

“Since they didn’t spend that in 2024, they’ve lost about P20 billion as of Jan. 1, which could have been bought, paid for, spent by that PhilHealth fund,” he added.

He said each agency’s budget is reviewed for its absorptive capacity.

“Isn’t it a bit audacious to ask for a bigger budget next year when they haven’t even fully utilized their current budget?” he said.

P117.6 billion released

PhilHealth has reported releasing P117.6 billion in the first nine months of this year as payment of claims of private and public hospitals.

“This is P25.4 billion or 27 percent higher compared to the same period in 2023,” PhilHealth posted on social media.

From January to September 2023, the state health insurer released P92.2 billion in payments to government and private hospitals.

In February, PhilHealth increased the case rate packages by 30 percent.

Medical coverage for hemorrhagic stroke, ischemic stroke, bronchial asthma, neonatal sepsis, breast cancer and pneumonia were also increased.

PhilHealth president Emmanuel Ledesma said the improved benefits cover a substantial portion of Filipinos’ medical costs and they no longer need to resort to loans. — Mayen Jaymalin