PhilHealth 'to adapt' if zero subsidy for 2025 signed by Marcos

The Philippine Health Insurance Corporation (PhilHealth) on Tuesday said it will adjust accordingly should President Ferdinand “Bongbong” Marcos Jr. approve the removal of its government subsidy under the proposed 2025 national budget. 

This, as Marcos on Monday defended the lawmakers’ move to allocate zero subsidy to PhilHealth next year, explaining the state health insurer has remaining P500 billion in reserve funds. 

Dr. Israel Francis Pargas, PhilHealth Senior Vice President for Health Finance Policy Sector, said that they respect the decision of the bicameral conference committee and the President.

“"Kami naman po ay nanggagaling lamang din do’n sa mga nasusulat sa batas, na dapat ang ating premium contributions ng ating mga indirect contributors ay should be subsidized by the national government. ‘Yun po ay nasusulat sa batas, subalit kami naman ay naniniwala rin na ito ay alam ng ating mga lawmakers, ng ating Kongreso,” he said in an Unang Balita interview. 

(We rely on what is stated in the law, that the premium contributions of our indirect contributors should be subsidized by the national government. That is written in the law, but we also believe our lawmakers, our Congress, know that.) 

“Kami po ay [for us] we respect the decision of the bicameral and of course of the President. And if this will be assigned into law, then of course the corporation will adjust, and will adapt, and surely we will provide all the benefits intended for our members,” he added. 

Pargas also reiterated that the state health insurer still has sufficient funds left to continue supporting beneficiaries.

PhilHealth earlier expressed hope that Marcos would reconsider the zero-subsidy decision.

Health Secretary Ted Herbosa, who sits as chairperson of the PhilHealth Board of Directors, said that even as PhilHealth is expected to get zero subsidy next year, it still has a P150 billion surplus from its 2024 budget that could pay for the subsidy of indirect members.

The decision to cut PhilHealth’s subsidy stems from its P600 billion reserve funds, as disclosed by Senate Finance Committee chairperson Grace Poe during the bicameral conference committee meeting on the 2025 General Appropriations Bill (GAB).