MANILA, Philippines – Lawmakers from the House of Representatives and the Senate agreed to allocate zero funding towards the subsidy of the Philippine Health Insurance Corporation (PhilHealth) for 2025.
Senator Grace Poe, who heads the finance committee in the upper chamber, said the bicameral conference committee decided that it would be best for the state health insurer to tap into its reserve funds.
“They need to use their reserve funds first because, as you can see, many people are already upset due to not receiving proper reimbursements, and the reimbursements aren’t being processed quickly. If we can see that they have that much money, they need to use it because it’s just going to waste. What are they doing? Why are they just keeping it and not using it?” Poe explained in Filipino.
Poe clarified, however, that PhilHealth will still have funding for operational costs.
It is not immediately clear how much budget was removed. The National Expenditure Program shows the executive branch sought a total budget of P74.43 billion for PhilHealth for next year.
Senate President Francis “Chiz” Escudero, citing figures from the Department of Finance (DOF), lamented how PhilHealth is unable to reduce member contribution rates, despite having nearly P500 billion in reserve funds.
Earlier this year, various groups went to the Supreme Court to challenge a DOF order to remit excess funds from PhilHealth worth P89.9 billion to the national treasury.
They insisted that such funds should be used to expand its coverage or reduce members’ contribution costs.
Three of four scheduled transfers to the treasury went through, but the Supreme Court in October issued a temporary restraining order blocking the return of the last tranche worth P29.9 billion. – Rappler.com
