The Market Monitor Minding the Nation's Business
Senator Loren Legarda believes the Philippine Health Insurance Corporation (PhilHealth) has enough resources to expand benefit packages and address gaps in public healthcare access despite the removal of the agency’s P74-billion government subsidy under the proposed 2025 national budget.
Legarda made this assertion during a Senate hearing on December 18, as she urged PhilHealth to utilize its P150 billion surplus funds to ensure the effective implementation of the Universal Health Care (UHC) Law.
“With billions in reserves and surplus, PhilHealth has the resources to ensure every Filipino benefits from quality healthcare. But without proper implementation of the UHC Law, many will continue to face barriers to essential services,” Legarda said.
PhilHealth Senior Vice President Renato Limsiaco Jr. disclosed to the Senate Committee on Health that the corporation’s total assets amounted to P628.2 billion as of October 2024. This includes P281 billion in reserves and P150 billion in surplus funds.
Despite the removal of the government subsidy, PhilHealth’s Corporate Operating Budget (COB) for 2025 has increased by almost 10 percent, reaching P284.1 billion compared to P259 billion in 2024. Of the total budget, P271 billion will be allocated to benefit expenses, covering both existing and expanded packages.
The 2025 funding will come from P203 billion in direct contributions, P20 billion from investments, and P48 billion from the surplus fund. PhilHealth assured that any shortfall in the P271 billion benefit expense allocation could be supplemented by the remaining surplus funds.
Legarda highlighted the importance of expanding benefit packages to address a wider range of healthcare needs, particularly for vulnerable groups. She also called on PhilHealth to identify accredited Konsulta provider centers equipped with facilities for breast screening, ultrasound, and mammograms and to make this information readily accessible to the public.
“The UHC Law was enacted to ensure healthcare is accessible at the point of care,” Legarda said. “It is unacceptable for people to queue at multiple offices seeking assistance for hospital bills while billions sit unused.”
She called on PhilHealth to implement operational reforms, expedite reimbursement processes, and prioritize vulnerable sectors to improve healthcare access.
PhilHealth has reassured the Senate of its financial stability and its capacity to sustain operations. The agency highlighted recent expansions in benefit coverage—30 percent in February and 50 percent in December 2024—which have enabled higher reimbursements for hospital bills.
Legarda reiterated that universal healthcare is a right, not a privilege. “The UHC Law was enacted to provide equitable healthcare for all Filipinos. PhilHealth must rise to the challenge and fulfill this promise. No Filipino should be left behind when it comes to healthcare,” she said.