The government will revive its subsidy for the Philippine Health Insurance Corp. (PhilHealth) next year, setting aside P53.2 billion under the proposed 2026 national budget, according to the Department of Finance (DOF).
Finance Secretary Ralph Recto confirmed the move, highlighting the administration’s push to improve public health services through both the Department of Health (DOH) and PhilHealth. “For 2026, there’s a subsidy for PhilHealth,” Recto said during a recent media interview. “We’re putting more focus on improving health services, not just PhilHealth but also the DOH.”
DOF Undersecretary Maria Luwalhati Dorotan-Tiuseco explained that the funds will serve as a supplement to PhilHealth’s reserves, which are projected to reach about P348 billion by the end of 2025. “It’s only to supplement PhilHealth’s funds,” she noted, emphasizing that the health insurer will still maintain a substantial balance going into 2026.
The restored funding aims to support a planned 30 to 50 percent increase in PhilHealth’s benefit packages, expanding coverage and boosting the quality of healthcare services nationwide.
No funding was allocated to PhilHealth in the 2025 budget after the bicameral conference committee removed its proposed P74 billion subsidy, citing the agency’s hefty reserves and a call for improved fund management.
Despite the subsidy’s return, Recto assured the public that there will be no increase in premium contributions. “There will be no hike in contributions. PhilHealth’s funds are sufficient,” he said.
PhilHealth president Edwin Mercado backed this statement, reiterating that contribution rates are fixed under the Universal Health Care Law. He added that the agency is working to enhance its collection efforts to offset reduced government funding. Still, Mercado acknowledged the need for additional support to sustain benefit payouts in 2026.
As the proposed 2026 National Expenditure Program (NEP) is still being finalized, Recto said health workers and human resource development will remain a top priority for the Marcos administration. The NEP is expected to be submitted to Congress within 30 days following the President’s State of the Nation Address later this month.
