Despite zero gov't subsidy, PhilHealth says funds sufficient to expand benefits

The Philippine Health Insurance Corporation's (PhilHealth) war chest is sufficient to bankroll any additions to or expansion of its benefit packages that Filipinos can avail for their health and medical needs, despite having zero government subsidy for fiscal year 2025, the state insurer assured Friday.

At the sidelines of PhilHealth's stakeholders' meeting in Pasig City, PhilHealth senior vice president for fund management Renato Limsiaco Jr. said the organization has an authorized corporate operating budget of P271 billion for this year to cover expenses for members' benefits.

"The source of that, of course, are direct contributions because we do not have indirect contributions," Limsiaco said, referring to subsidies coming from the national government that will cover the premiums for "indirect members" of PhilHealth.

Indirect members refer to indigents identified by the Department of Social Welfare and Development (DSWD), 4Ps beneficiaries, senior citizens, and persons with disabilities, among others who are not paying premiums to PhilHealth.

Limsiaco said PhilHealth is expecting to collect over P200 billion from its direct contributors this year.

The P6.325-trillion national budget for 2025 was passed by Congress and signed into law without the P74-billion national government subsidy for PhilHealth.

Limsiaco said PhilHealth has a surplus of P144 billion and a total reserve of P281 billion.

"So it can be tapped as a source of funding for additional benefits, if needed," he said.

PhilHealth president and CEO Emmanuel Ledesma Jr. reiterated during the meeting that the state health insurer has enough funds to finance its benefits packages.

The government corporation launched a set of new and expanded benefit packages that Filipinos can avail this year, which included a 50% hike in case rates of almost 9,000 benefit packages.

President Ferdinand "Bongbong" Marcos Jr. had said PhilHealth has enough funds to continue delivering services despite the proposed zero subsidy.

Finance Secretary Ralph Recto also earlier maintained that PhilHealth's operating budget was adequate despite zero government subsidy for fiscal year 2025.

Recto said the Department of Finance would strictly monitor if PhilHealth will spend its budget wisely. — VDV, GMA Integrated News