The Philippine Health Insurance Corporation (PhilHealth) still has enough funds to provide its members with benefits and services in 2025, President and Chief Executive Officer Emmanuel R. Ledesma, Jr. said in a video statement.
This follows President Ferdinand Marcos, Jr.’s decision to slash the P74 billion subsidy intended for PhilHealth, with the Bicameral Conference Committee excluding the state health insurer from the General Appropriations Bill for 2025 on Wednesday, December 11.
“The decision of the Bicameral Conference Committee reflects its wisdom,” Ledesma said. “The Bicam understands PhilHealth’s capacity to continue managing the National Health Insurance Program given its surplus funds.”
According to him, PhilHealth had P281 billion in its reserves as of October and a surplus of P150 billion from its 2024 budget. Additionally, PhilHealth had an investment portfolio amounting to P489 billion as of November. In total, the corporation has at least P920 billion to use for 2025.
“We are dedicated to enhancing our benefit packages and reducing out-of-pocket expenses so that every patient feels the security of their health insurance,” Ledesma said. “Rest assured, all PhilHealth benefits will continue to be paid, and will even improve.”
However, the health insurance corporation will still be appealing the subsidy cut. PhilHealth spokesperson Dr. Israel Francis Pargas said that while they can adapt, administrative expenses will be affected by 2026 because it is dependent on social premium collection.
Not the first budget issue
In 2018, House members found that PhilHealth interim president Celestina Dela Serna had spent a year living in a hotel worth P3,800 a night, with expenses charged to PhilHealth, Politiko reports.
In 2020, a former antifraud officer of PhilHealth blew the whistle on a “syndicate” within the corporation, alleging that it had pocketed P15 billion of its 2019 funds. Board member Alejandro Cabading also claimed that the executive committee, who allegedly formed the syndicate, approved the purchase of overpriced equipment, including a set of laptops worth P115.32 million. While former president and CEO Ricardo Morales denied these claims, he admitted that the agency lost P10.2 billion to fraud in 2019. He resigned from his post in 2021.
