Finance Secretary Ralph Recto assured the public on Monday that the Department of Finance (DOF) will closely oversee PhilHealth’s spending in 2025, despite the state health insurer receiving no government subsidy for the fiscal year.
In a press briefing at Malacañang following the signing of the P6.326-trillion national budget, Recto emphasized that PhilHealth’s operating funds are sufficient to sustain its operations and services.
“My understanding is that Congress made this decision because PhilHealth’s corporate operating budget is adequate,” Recto explained. “They have reserved funds of around ₱280 billion, a surplus of about ₱150 billion, and investments exceeding ₱400 billion. They are expected to earn ₱200 billion in 2025 and spend only ₱150 billion, which will increase their surplus by another ₱50 billion.”
Recto stressed that the DOF would ensure that PhilHealth manages its funds effectively, particularly in addressing the top health issues affecting Filipinos.
Ensuring Uninterrupted Health Services
Senator Grace Poe, chair of the Senate finance committee, noted that PhilHealth’s reserves of ₱600 billion could adequately fund its needs, hence the decision for zero subsidy in the 2025 budget.
President Ferdinand “Bongbong” Marcos Jr. echoed this assurance, stating that PhilHealth has sufficient resources to maintain uninterrupted services.
Health Secretary Ted Herbosa confirmed that the insurer’s ₱150-billion surplus from 2024 is available to subsidize coverage for indirect members. The Department of Health (DOH), PhilHealth’s supervising agency, has also affirmed that beneficiaries will not experience disruptions in services.
While PhilHealth acknowledged its financial stability, it had previously expressed hope that the administration might reconsider the subsidy decision.
Monitoring and Strategic Focus
Recto said the DOF will ensure better spending practices within PhilHealth, with particular attention to the leading illnesses affecting the Filipino population.
PhilHealth’s financial position and the government’s monitoring efforts aim to uphold healthcare access for its members in the absence of direct funding support in 2025.