Health Secretary Ted Herbosa clarified on Monday that the Philippine Health Insurance Corporation (PhilHealth) has ample funds to cover its obligations despite the removal of government subsidies under the proposed 2025 national budget. The state insurer reportedly holds a P150 billion surplus from its 2024 allocation, which can cover subsidies for its indirect members.
Herbosa, who chairs the PhilHealth Board of Directors, stated that the subsidy for indirect contributors amounts to P5,000 each. With 16 million indirect members, the P150 billion surplus is more than enough to fund the estimated P80 billion needed for the coming year.
“PhilHealth utilized only 63% of its 2024 budget, resulting in a surplus of P150 billion. This surplus alone is enough to pay for the P74 billion subsidy for indirect contributors,” Herbosa explained in a GMA News report.
The move to cut PhilHealth’s subsidy was backed by its P600 billion reserve funds, a figure disclosed during budget discussions. Under the Universal Health Care Act, PhilHealth is required to maintain a reserve fund sufficient for two years’ worth of benefits and operating expenses, which currently stands at over P280 billion.
Herbosa assured the public that PhilHealth’s services would remain uninterrupted despite the cut, adding that its 2025 operating budget is set at P284 billion. However, he expressed hope that President Ferdinand “Bongbong” Marcos Jr. would reconsider the zero-subsidy decision.
Senator JV Ejercito also announced plans to push for an oversight committee hearing to review PhilHealth’s implementation of the Universal Health Care Act, citing possible shortcomings in its operations.
