The Philippine Health Insurance Corp. (PhilHealth) is poised to receive fresh government funding in 2026 after the executive branch included a ₱53.26-billion allocation in the proposed National Expenditure Program (NEP).
The funding, if approved, will bankroll the National Health Insurance Program (NHIP), particularly covering premium contributions of indirect contributors such as indigent families, senior citizens, persons with disabilities, and financially distressed patients. The Universal Health Care Act requires the state to shoulder these contributions.
PhilHealth lost its subsidy this year after Congress cut its 2025 budget, citing the insurer’s ₱500-billion reserves and delays in expanding benefit packages. That move forced the agency to operate on its ₱284-billion corporate budget, which already covers programs like PhilHealth Konsulta, outpatient mental health services, and emergency care funds.
The 2026 NEP, however, restores partial state support, recognizing PhilHealth’s mandate to broaden health benefits, maintain case rates for reimbursements, and fund the government’s zero-balance billing policy in state-run hospitals. The policy promises patients admitted to basic accommodations in Department of Health facilities that they will not be billed upon discharge, though full implementation across all government hospitals remains pending.
Apart from direct appropriations, PhilHealth also draws resources from sin tax revenues, as well as contributions from the Philippine Amusement and Gaming Corp. (PAGCOR) and the Philippine Charity Sweepstakes Office (PCSO).
Overall, the proposed health sector budget for 2026 stands at ₱320.5 billion, marking a 23.6% increase from this year. This covers the Department of Health, specialty hospitals, PhilHealth, and regional health facilities. But despite the rise, health spending still falls far behind the ₱1.556-trillion infrastructure budget.
The total national budget for 2026 is pegged at ₱6.793 trillion, with ₱2.314 trillion allotted to social services—including education, health, and social protection. Lawmakers may still adjust these figures, though any increase for health care would require cutting allocations from other programs.
