PhilHealth’s zero subsidy for 2025 an insult to members – group

MANILA, Philippines — A group that monitors social development issues said on Thursday that the zero subsidy for the Philippine Health Insurance Corp. (PhilHealth) next year was “an insult” to all its members.

Social Watch Philippines’ statement followed committee on finance chair Senator Grace Poe’s confirmation that PhilHealth will receive no government subsidy for 2025, citing its reserve funds amounting to P600 billion.

According to the group, this decision by bicameral committee members demonstrates a “disregard” for the Universal Health Care (UHC) and Sin Tax Laws.

“The zero budget allocation for the premium contributions of indirect contributors, which includes senior citizens, persons with disabilities, and poor and vulnerable Filipinos is a clear manifestation of the state’s abandonment of its duty towards the fulfillment of a genuine UHC,” Social Watch said in a statement.

The group further criticized the move, stating that it violates the Sin Tax Law by failing to allocate the full earmarked funds for the premium contributions of PhilHealth’s indirect contributors, which should amount to a minimum of P69.81 billion.

READ: PhilHealth has zero subsidy for 2025 due to P600B reserve funds

Community leaders and health advocates also slammed the decision to allocate zero subsidies for PhilHealth in 2025.

“Parang zero ang konsensya ng mga nagdesisyon sa bicam na lagyan ng zero budget ang PhilHealth. Zero din ang boto namin sa kanila sa mga darating na eleksyon,” Metro Manila community leader Ernesto Ofracio said in a statement on Thursday.

(It seems like the decision-makers in the bicam have no conscience for zero budgeting PhilHealth. They will get zero votes from us in the upcoming elections.)

In a statement on Wednesday, Poe emphasized that PhilHealth must utilize its reserve funds first, given the government’s significant financial constraints.

However, Social Watch pointed out that PhilHealth’s financial statement highlights a significant crisis, with its insurance contract liabilities totaling P1.252 trillion, far surpassing its P488 billion reserve funds as of March 2024.

During the budget preparation phase earlier this year, Philhealth requested a budget of Php 150.92 billion to cover the premiums of 25.28 million indirect contributors.

However, this was drastically reduced in the National Expenditure Program and the General Appropriations Bill to P53.13 billion, with the Senate proposing an even lower allocation of P47 billion, according to Social Watch.

READ: PhilHealth’s P74-B subsidy scrapped due to its ‘failure’ – Escudero