Marcos: PhilHealth has enough funds to provide services

President Ferdinand Marcos Jr. on Monday said state insurer Philippine Health Insurance Corporation (PhilHealth) has enough funds to continue delivering services despite the removal of its government subsidy under the proposed 2025 national budget. 

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

PhilHealth requires around P100 billion annually for its operations and services, he added. 

“The PhilHealth has sufficient budget to do all of the things that they want to do,” said Marcos.

“Let’s go back in the last two years, kung titingnan ninyo ang services na binibigay, ang mga treatments na binabayaran ngayon ng PhilHealth ay nag-expand na nang husto. We’re taking  care of more conditions… we’re tending to more people and thats from the budget of 2023 and 2024,” he said.

(If we look back over the past two years, you'll see that the services provided and the treatments covered by PhilHealth have significantly expanded. We're taking care of more conditions and serving more people, and this is based on the budgets for 2023 and 2024.)

Marcos added, “the reason why we do not want to subsidize is because the subsidy, uupo lang sa bank account ng PhilHealth. Hindi magagamitt…That’s the simple explanation. They have sufficient funds to carry on”. 

(The reason we do not want to provide subsidies is that the funds would just sit in PhilHealth's bank account and not be utilized. That’s the straightforward explanation. They have enough funds to continue operating.)

The President then urged PhilHealth to start digitalizing to boost its processing capacity and deliver services seamlessly. 

“Mag-digitalize na kayo. That’s where the effort is para lahat ng mga tao ma-process natin and tuloy-tuloy naman. At the same time, mabilis makuha ng tao,” he added. 

(Start digitalizing your process. That's where the effort should be so we can process everyone smoothly. At the same time, it makes it easier for people to access.)

Last week, Senate finance committee chairperson Grace Poe disclosed that PhilHealth will receive no subsidy under the proposed national budget next year, saying the state insurer still has P600 billion in reserve funds. 

"Sa ngayon, ang PhilHealth ay hindi nabigyan ng budget. Sapagkat kailangan nilang gamitin muna yung kanilang reserve funds," Poe told reporters in an interview after the bicameral conference committee meeting on the 2025 General Appropriations Bill.

(Right now, PhilHealth was not given any budget for next year because they need to use first their reserve funds.)

"Ang PhilHealth ngayon, kung hindi ako nagkakamali, merong P600 billion na reserve funds. Naka-deposito lang yan sa... kung anong account nila nilalagay, but definitely kung anong kinikita niyan, mas maliit pa sa, mas mababa pa sa inflation. So, lugi pa yung gobyerno," Poe explained.

(They currently have P600 billion in reserve funds that are deposited in one of their accounts.)

Department of Health (DOH) Secretary Ted Herbosa earlier said the state insurer still has a P150 billion surplus from its 2024 budget that could pay for the subsidy of indirect members.

For its part, PhilHealth has assured the public of sufficient funds to support beneficiaries but expressed hope that Marcos Jr. would reconsider the zero-subsidy decision.

Meanwhile, the DOH, which is PhilHealth's supervising agency, affirmed that services would remain uninterrupted.

Senator JV Ejercito also said on Sunday that he would push for an oversight committee hearing to assess the implementation of the Universal Health Care Act, citing potential lapses in PhilHealth's role.—LDF, GMA Integrated News