MANILA -- State health insurer PhilHealth said it will not raise contributions for its members even if the government will no longer subsidize it. The state-led health insurer said it is also open to lowering its contribution rate.

The bicameral conference committee of senators and congressmen, which reconciled their respective chambers' versions of the P6.352 trillion 2025 national budget, took away the state subsidy for PhilHealth next year, citing the insurer's huge reserve funds.

PhilHealth spokesperson Dr. Israel Francis Pargas said it respects the committee's decision and President Ferdinand Marcos Jr’s wisdom on the matter, saying they are willing to “adjust and adapt” should the 2025 General Appropriations Act be signed into law. 

“Ang pinakahuling premium increase doon is yung 2024 na maximum of 5 percent. Na-reach na natin yun so wala nang inaasahan na magiging increase pa sa premium contributions," he said.

(The latest premium increase under the Universal Healthcare Law is this 2024 which is 5 percent. We have reached this so we are no longer expecting any increase in premium contributions.)

Marcos had noted that the agency has P500 billion in reserve funds. 

"The cost to provide their services in one year is less than P100 billion," he noted.

Marcos says PhilHealth has enough funds despite zero subsidy

CALL FOR LOWER PREMIUMS

Lawmakers also urged PhilHealth to boost its efforts to lower the premium contributions of members. PhilHealth President and CEO Emmanuel Ledesma Jr committed to recommend a decrease in contributions, while expressing support for a Senate bill seeking to lower rates from 5 percent to 3.25 percent.

"I actually made a commitment to sit down with my team in PhilHealth to recommend for a decrease in the premium contributions. We are fully supporting that reduction. And that is a very huge reduction po," said. 

Ledesma explained that premium rates are set by law and PhilHealth does not decide on increases.

Congressmen meanwhile criticized PhilHealth for supposedly putting investments ahead of expanding healthcare benefits. Panel chairperson Manila Rep. Joel Chua said the state-run health insurer may be "too focused" on investments instead of proving affordable healthcare.

"Sana ito pong PhilHealth magfocus tayo sa focus natin which is healthcare benefits instead of investments," Chua said.

Antipolo Rep. Romeo Acop also questioned PhilHealth's growing income, noting that its interest income went from P11.5 billion  in 2022 to P20.7 billion in 2023. PhilHealth's other income also rose from P698 million in 2022 to P815 million in 2023.

Acop also cited PhilHealth's investments in time deposits in local currency jumped from P135 billion in 2023 from P126.4 billion in 2024, citing an increase in about P10 billion.

Ledesma said PhilHealth has a surplus of P150 billion and a total reserve of P200 billion as of October 2024. This is complemented by an investment fund amounting to nearly P489 billion as of November 2024.

"These figures demonstrate that PhilHealth is financially robust, well-positioned to sustain operations, and fully capable of addressing the healthcare needs of our 115 million members. And we are steadily progressing with our objectives. In fact, we will implement another 50 percent increase in coverage for most of our case rates packages," Ledesma said.

Ledesma meanwhile assured they have started making adjustments in their policy. PhilHealth earlier issued of continued benefits and services despite the absence of government subsidy.

"Our focus is benefit expansion and in the next few years iiba yung trend po. We hear you loud and clear We are changing our policy, we are changing our direction and we will get there," Ledesma added.

PhilHealth earlier said Filipinos can expect enhanced benefit packages next year. The Department of Health (DOH) also assured the public that they will continue to enjoy all of their PhilHealth benefits.

PhilHealth assures continued services despite loss of 2025 government subsidy

Health Secretary Teddy Herbosa said they have approved the P284 billion corporate operating budget for PhilHealth next year, which is higher than the P259 billion corporate operating budget this year.  

“Paano ka magze-zero kung every year may nagco-contribute? Mauubos lang yan kung yung benefit ay mas mataas sa perang meron,” he said. 

(How can PhilHealth’s budget deplete to zero if there are contributions coming in every year? It will only vanish if the benefits are higher than the money it currently has.)

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