MANILA. The Philippine Health Insurance Corporation (PhilHealth) has expressed hope that President Ferdinand “Bongbong” Marcos Jr. will reconsider the decision to grant it zero subsidy for 2025. Despite the funding cut, the agency has assured the public that it has sufficient resources to sustain its operations and provide services to its beneficiaries.
In a Dobol B TV interview, Dr. Israel Francis Pargas, Senior Vice President for PhilHealth’s Health Finance Policy Sector, admitted that the decision caught them off guard. The subsidy, historically funded through sin taxes, has been crucial for covering premium payments of indirect contributors.
“However, kung talaga pong magiging batas ‘yan, at siyempre kami naman ay umaasa na bago pa pirmahan ng Pangulo, ay ito’y mapag-aralan muli,” Pargas said, emphasizing their hope that the decision would be reviewed before being finalized.
If no subsidy is provided, Pargas noted that PhilHealth would rely on its existing surplus and investment funds to sustain operations.
“Ang mangyayari po niyan, kung talagang wala na maisasabatas, na zero budget po talaga tayo, kung ano po ang ating pondo sa ngayon, katulad po ng mga nababanggit na surplus and investment funds, doon po natin lahat kukunin ‘yung magiging pondo natin para sa taong 2025,” he explained.
Challenges Beyond 2025
Pargas assured that the agency’s funds would be enough to meet its 2025 obligations but warned that financial challenges, particularly in administrative expenses, could arise by 2026 if no additional funding is allocated.
The decision to cut the subsidy was linked to PhilHealth’s reported P600 billion in reserve funds, as revealed by Senate Finance Committee Chairperson Grace Poe during deliberations on the 2025 General Appropriations Bill (GAB).
Senate President Francis “Chiz” Escudero cited lapses in PhilHealth’s management, including controversies over its transfer of P89.9 billion in excess funds to the national treasury, as the basis for removing the subsidy.
Budgetary Changes
Initially, PhilHealth was allocated P74.431 billion under the 2024 National Expenditure Program (NEP), which was later reduced to P64.419 billion by the Senate. However, the bicameral committee ultimately decided to eliminate the allocation entirely for 2025.
The final version of the P6.352 trillion 2025 GAB is expected to be signed into law by President Marcos by December 20, 2024, according to the Presidential Communications Office.
PhilHealth’s appeal for reconsideration underscores the critical role government subsidies play in supporting the country’s health insurance system, especially for the most vulnerable sectors.
Carlo Juancho FuntanillaFrontend Developer, WordPress, Shopify
Contributing Editor
AMA ACLC San Pablo
