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PhilHealth hopes for review of zero subsidy for 2025




December 16 ------ The Philippine Health Insurance Corporation (PhilHealth) was hopeful that President Ferdinand "Bongbong" Marcos Jr. would review the decision not to grant it a subsidy for 2025, as the agency assured the public it still had sufficient funds for its beneficiaries. Dr. Israel Francis Pargas, Senior Vice President for PhilHealth's Health Finance Policy Sector, admitted during a Dobol B TV interview that the decision was a surprise. The subsidy, funded by sources such as sin taxes, supports premium payments for indirect contributors, Pargas said. "However kung talaga pong magiging batas 'yan, at siyempre kami naman ay umaasa na bago pa pirmahan ng Pangulo, ay ito'y mapag-aralan muli," Pargas said. However, he assured that PhilHealth would adapt its plans if the zero subsidy is finalized.


Adapting

Pargas emphasized that PhilHealth’s operations for 2025 would rely on its surplus and investment funds if no subsidy is allocated. "Ang mangyayari po niyan, kung talagang wala na maisasabatas, na zero budget po talaga tayo, kung ano po ang ating pondo sa ngayon, katulad po ng mga nababanggit na surplus and investment funds, doon po natin lahat kukunin 'yung magiging pondo natin para sa taong 2025," he said.


While confident the current funds would suffice for 2025, Pargas cautioned that potential challenges might emerge by 2026, particularly in administrative expenses. The decision to cut PhilHealth’s subsidy stems from its P600 billion reserve funds, as disclosed by Senate Finance Committee Chairperson Grace Poe during the bicameral conference committee meeting on the 2025 General Appropriations Bill (GAB).


Senate President Francis “Chiz” Escudero cited PhilHealth’s lapses as the reason behind the removal of its subsidy. This comes after controversies surrounding PhilHealth’s transfer of P89.9 billion in excess funds to the national treasury. Under the initial 2024 National Expenditure Program (NEP), PhilHealth was allocated P74.431 billion, later reduced to P64.419 billion by the Senate. However, the bicameral committee decided to cut the allocation entirely. The final version of the 2025 GAB, amounting to P6.352 trillion, is expected to be signed by President Marcos by December 20, 2024, according to the Presidential Communications Office.


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