Senate President Francis Escudero has called on PhilHealth to consider reducing its contribution rates, citing the agency’s substantial unutilized funds. According to Escudero, PhilHealth has approximately P500 billion in excess funds that have accumulated over the years.
Escudero, referencing figures from the Department of Finance (DOF), pointed out that the government provides an annual subsidy for PhilHealth premiums, totaling around P70 billion. He added that over the past few years, PhilHealth received significant subsidies, including P71.3 billion in 2021, P80 billion in 2022, P79 million in 2023, and P40.3 billion for 2024.
Escudero suggested that instead of returning the idle funds to the national treasury, PhilHealth could use these reserves to reduce premium rates, which are primarily funded by the government.
This recommendation comes after the DOF instructed PhilHealth to return P89.9 billion from its reserves to the national budget, a move that has drawn criticism from both medical professionals and politicians. The DOF, however, defended its directive, stating that the 2024 General Appropriations Act allowed for the reallocation of idle funds.
