Finance Secretary Ralph Recto announced on Wednesday that the Philippine Health Insurance Corporation (PhilHealth) is expected to close 2024 with approximately P546 billion in funds, even after transferring P90 billion to other government expenditures.
During a budget briefing with Senate Finance Committee Chair Grace Poe, Recto emphasized PhilHealth’s strong financial standing, noting that the state insurer will generate an income of P240 billion for the year while incurring expenses of P179 billion. “They will make P61 billion. By the end of the year, they will have P546 billion, and we already took away the 90. So kung 150 ang gastos nila, they have good for three years at least,” Recto stated.
Recto assured the committee that PhilHealth’s funds, primarily invested in government bonds, would be more than sufficient to cover their obligations. He highlighted that despite the suspension of premium increases during the pandemic, PhilHealth remains financially robust.
As the Senate deliberates an amendment to the Universal Health Care Act, which could potentially reduce premium rates, Recto expressed a preference for enhancing benefit packages. “The President has already instructed PhilHealth to improve it by roughly 30 percent, if I’m not mistaken, not to mention for cancer and life-threatening illnesses,” he said.
Addressing concerns about the use of PhilHealth’s excess funds for other expenses, Recto cited the General Appropriations Act of 2024, which allows the Department of Finance to issue circulars regarding the fund balances of government-owned and controlled corporations (GOCCs). He also clarified that PhilHealth did not utilize its resources during the pandemic, as the national government covered all pandemic-related expenses.
“It is not the obligation of PhilHealth to pay the emergency allowances of our frontline workers,” Recto explained, underscoring that the insurer’s reserve funds remained largely untouched during the crisis.
