No Government Funding in 2025 Budget
State health insurer PhilHealth will not receive government funding in the proposed 2025 national budget, as announced by the bicameral conference committee on December 11. Instead, the agency will be required to use its reserve funds for its operations.
Senator Grace Poe, the sponsor of the national budget in the Senate, explained that PhilHealth must first use its reserves before seeking additional funds from the government.
“For now, PhilHealth will not be given a budget, because they must first use their reserve funds,” Poe said during an ambush interview. She argued that the reserve is enough to cover the agency’s operational costs.
The funds originally intended for PhilHealth were redirected to other government agencies with more urgent funding needs.
Criticism Over PhilHealth’s Idle Funds
Several senators, including Senate President Francis Escudero, have expressed concern over PhilHealth’s large idle reserves, criticizing the agency for inefficiently using its funds in the past.
Despite this, opposition Senator Risa Hontiveros strongly opposed the decision to withhold subsidy support, calling it “unfair, illegal, and potentially unconstitutional.”
Hontiveros argued that the decision could negatively impact the goal of achieving universal healthcare in the country, especially for those who cannot afford to pay premiums.
Legal Concerns and Universal Healthcare Impact
Hontiveros said that, according to the PhilHealth Charter, Sin Tax Law, and Universal Healthcare Act, a portion of taxes must go to PhilHealth, no matter how much it has in reserves. She stressed that reserves should only be used for emergencies or future needs, not for paying premiums of indirect contributors.
The move has sparked a debate on how to balance fiscal discipline with ensuring healthcare access for all Filipinos.
