PhilHealth in ‘good financial standing’ despite zero subsidy – Ledesma
Personnel attend to queries at the counters of PhilHealth office on Mother Ignacia Street in Quezon City taken on September 26, 2023. INQUIRER PHOTO / GRIG C. MONTEGRANDE
MANILA, Philippines — Despite being given zero subsidy for 2025, the Philippine Health Insurance Corporation (PhilHealth) is still in “good financial standing,” according to its President and Chief Executive Officer (CEO) Emmanuel Ledesma Jr.
Speaking before a Senate hearing on Thursday, Ledesma assured all members that PhilHealth is “fully capable of meeting all obligations without disruptions,” but he also said 2024 was uniquely challenging for the state insurer.
He made the disclosure after he was pressed by Sen. Bong Go, who was presiding over the hearing as panel chair, about the corporation’s plans for 2025.
“First, the corporation received orders for the return of a considerable portion of its funds which is precisely the subject of this legislative investigation. PhilHealth [also] received zero subsidy allocation for 2025. These developments have understandably caused our members concerns about the implications on their healthcare benefits and the institutions’ overall stability,” Ledesma said.
He also said he is grateful to the panel for allowing them to clear the air and address the apprehensions raised by members about the possible repercussions of the big changes.
“At the outset, we declare categorically that PhilHealth is currently in good financial standing and our commitment to universal health coverage is as steadfast as ever. PhilHealth operates with funding drawn from various sources, including member contributions, government subsidies, and other revenues. Our reserve funds are currently adequate as our investments paid off and we were extremely prudent in financial management,” he said.
“However, our members can be rest assured that their national health insurer currently enjoys a strong financial position so it is fully capable of meeting all obligations without disruptions,” he added.
Ledesma then assured PhilHealth members that they remain entitled to all their benefits despite the developments.
“All programs, ranging from the Konsulta to the enhanced benefit packages are being implemented as usual. No benefit packages will be taken away or diminished this year,” he said.
Ledesma also said PhilHealth has new benefits packages apart from “enhancing existing ones.”
“To begin with, we closed out 2024 with a 50 percent increase in all our case rates packages. In total, the effective rate of increase implemented last year for all case rates was 95 percent,” he said.
“In other words, PhilHealth today provides almost double the amount of financial protection against healthcare costs compared to the beginning of last year,” he added.
Due to its whopping P600-billion reserve funds, PhilHealth got zero subsidy for 2025.
READ: PhilHealth has zero subsidy for 2025 due to P600B reserve funds
