The decision of Congress to remove subsidies for the Philippine Health Insurance Corporation (PhilHealth) in the 2025 national budget will be contested in the Supreme Court, according to former Finance Undersecretary Cielo Magno. She described the move as “unconstitutional,” citing its potential violation of laws that mandate government funding for healthcare access.
Magno argued that the burden of paying premiums for indigent contributors, including the poor, elderly, and unemployed, would now fall entirely on PhilHealth members and direct contributors. “We are going to the Supreme Court to file a case and question this decision. It’s against our rights, the right to health, and specific laws that allocate funds for PhilHealth,” she said in a TikTok video.
The bicameral committee’s final report on the P6.352-trillion national budget for 2025 removed an initial allocation of over P74 billion for PhilHealth subsidies. Lawmakers cited the state insurer’s alleged inefficiency and massive reserve funds, reportedly amounting to P600 billion, as reasons for the cut.
Critics, however, claim that the move violates the Universal Healthcare Act and the Sin Tax Law, which mandate that a portion of government revenues from tobacco and sugary beverages be allocated to PhilHealth. Senator Risa Hontiveros called the decision “unfair, illegal, and potentially unconstitutional,” while Magno insisted that legal action is necessary to protect the public’s right to health.
PhilHealth has faced scrutiny in recent years for slow budget utilization and inefficiencies, despite receiving significant subsidies in the past. In 2022, the agency received a record P80 billion in government support but saw a sharp reduction to P40.3 billion this year due to its excess reserves.
Senate President Francis “Chiz” Escudero defended the decision, calling it a necessary consequence of PhilHealth’s shortcomings and a potential “wake-up call” for reforms within the agency.
